VA PTE tax not computing correctly

Forum|Forum|3 years ago
March 10, 2023
1 reply
6 views

The VA PTE tax is being computed on the "net taxable income", before deducting separately stated items such as Section 179 depreciation. . I don't see a software fix mentioned anywhere or even acknowledgment of the issue. .

Does anyone have any updated info on this issue?

Thanks for any updates.

Lacerte Tax

This topic has been closed for replies.

Best answer by sjrcpa

Are you sure the software is wrong?

That's how it works for MD PTET. I haven't ventured into VA's yet.

sjrcpaAnswer

Level 15

Are you sure the software is wrong?

That's how it works for MD PTET. I haven't ventured into VA's yet.

The more I know the more I don’t know.

W

WJLAuthor

Level 2

Thanks. I believe you are correct. Just finishing up a MD electing PTE and going back to the VA electing PTEs. The reason I thought it was incorrect:

Someone on the VA CPA tax listserve posted something about it not computing correctly. And no one said otherwise.

And, it seems unfair that the PTE tax is computed before the deduction for Section 179. Seems like everyone will be overpaid that has separately stated deductions.But, I agree that's the way its working.

R

rjskal

Level 3

I have the same issue. Yes, it's disallowing Sec 179 but it's not calculating VA depreciation on those Sec 179 assets. Seems like it should be reflected on Line 14 of the Form 502. Otherwise all depreciation is lost on those assets.

Same thing occurs if you select Bonus depreciation on those assets. Lacerte adds it back on line 8 of the 502 but does not calculate any line 14 depreciation on those assets.

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