PAL sourcing by state instruction

Forum|Forum|2 years ago
September 2, 2023
2 replies
24 views

Inputting a K-1 from an outside CPA.

I don't understand how to direct PALs from prior years to states.

This snip blow is the input for keeping a PAL carryforward off the state. (screen 20, code 51) But for some reason it also does NOT appear on the Federal PAL carryforward sheet. S specifically directs it to the desired Fed or state, right?

The states are Oregon and California.

I think there is a tutorial, but it is difficult to find.

Lacerte Tax

This topic has been closed for replies.

PhoebeRoberts

Intuit Community Champion

This is the proforma data I get, which generally produces an appropriate output. The 14702 coded to OK (the resident state) with no source code is the total Federal passive loss carryforward. The little amounts coded to other states with source code S are the non-resident state specific losses. Lacerte doesn't automatically make the Oklahoma out of state income or loss adjustments, regardless of input, for resident returns - probably because Oklahoma provides zero guidance as to how you should calculate them. I personally make the out of state adjustment to Oklahoma in the year the item arises, without regard to when it's allowed, because the out of state amounts suspended for passive or basis aren't material.

S

strongsilenceAuthor

Level 10

That the resident state could be this issue didn't come to me. Thank you.

In my case California is the Resident state and Oregon is a Non-Resident state. There was not Oregon source income or loss and so Oregon should not list this PAL. (This was how the prior CPA treated it and I think that is correct.)

Is it possible to tell LC to omit a PAL for a particular state? I have input a line of 0, OR, and S but that doesn't omit the PAL from Oregon.

S

strongsilenceAuthor

Level 10

I have to input the 2021 tax return because the prior CPA wouldn't forward me the electronic file. I offered to pay him for it. I'll get over it.

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