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Level 3
posted Jan 16, 2024 9:18:41 AM

Alternative BAsis for LLC in CT not working

Last year CT made LLC taxes optional for out of state residents, using an "alternative basis" on the CT 1065.

 

TT has that option but last year it would not work and continued to put all income in as CT sourced, even though none was, requiring me to pay CT taxes as as a Massachusetts resident.

 

I gave up and paid my accountant to do the taxes. She uses Alternative Basis and there was not CT sourced income,so it all "passed through".  Doe anyone know why Alternative Basis didnt work last year and has this been fixed?

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5 Replies
Level 13
Jan 16, 2024 1:52:06 PM

A few comments:

  • While TT is a solid tax software, the software is geared toward the masses.  Sometimes the more complicated areas have technical issues and may need an intervention.  Did you call TT and ask for assistance?
  • You don't indicate whether you indicated within the software that you wanted to elect the Alternative Basis Calculation.
  • Did you attempt to complete Schedule CT-AB supplemental attachment?
  • At this point in the filing season, many forms and schedules are not final and may not be final for months; this is the result of each state needing to review and approve forms to be released.
  • I would recommend you call TT and ask the specific question.

Level 3
Jan 16, 2024 4:34:39 PM

Thank you for your response The ad is blocking some of this but 1) I called TT 3 times. Once I was routed to individual expert who said of course she couldnt help. Call back. Got same run around 2) I tried 2022 again from scratch using Alternative basis. Same result. I can over ride CT income column and get correct result but not sure there is not another glitch somewhere. I may buy 2023 just to see, or do form by hand on CT pdf. I dont think you can submit it online however. As there are no taxes owed it is sorta s formality, so I may do it by hand and “force “ the numbers in the TT forms. Would be nice to save $350 bucks

Level 13
Jan 17, 2024 5:15:59 PM

Sounds unfortunate.

Since I am not on a Windows environment, I can't see the software; only works on Windows.

Based on your response, I would recommend you just prepare the return by hand and paper file the return.  Make sure you send certified mail return receipt requested.

Level 3
Feb 15, 2024 10:31:12 AM

Unfortunately CT will not take paper forms for LLCs and the state web page requires third party software!

 

Do you know if I overide the automatic TT data and input he correct amount will TT still file electronically?

Expert Alumni
Feb 21, 2024 2:03:10 PM

No. You will not be able to efile if you made overrides.  Why can't I e-file my return?