Louisiana non-resident return not using the NR ratio for deductions correctly
I have a CA resident with one item of rental income (From a trust K1 flowthrough) that is for Louisiana (LA). I have everything going smoothly with a non-resident Form IT-540B-2D return being populated and the LA source income is properly being reflected. On line 9 it calculates a ratio of LA income to Federal income and it is VERY SMALL. When I was using UltraTax it properly applies the very small ratio to the applicable deduction on lines 10, 11A, 11B, or 11C to disallow most of the deductions because their LA income is such a small ratio of all their income. This results in some tax to be paid to LA.
In Lacerte - everything is right up to the Ratio. But then it is allowing the full federal amount of deductions against the small amount of LA income resulting (incorrectly) in no LA tax. I just got off the phone with support for more than 30 minutes. There is no place to override the LA forms for the deductions. The ONLY override input area is on screen 55.031 where you can indicate the LA source income. But that's the only thing Lacerte is doing properly.
At this moment, I am looking having to complete a fill-n-print LA tax form from their website, manually complete it correctly, and snail mail it to the LA taxing authority. This is absolutely unacceptable that Lacerte will not properly calculate this form.
