Business & farm

This area has many components to it and there are minimal facts.  Here are some comments and links to hopefully help:

• In general, the PTET is deducted at the federal level in arriving at ordinary income.  So, yes, the message you are getting makes sense.
• https://www.in.gov/dor/tax-forms/ptet/
• https://www.in.gov/dor/tax-forms/ptet/faq/#Can_nonresident_partners_and_shareholders_residing_in_rev...
• Above are a couple links to hopefully answer some questions.
• Additionally, there is an election that needs to be filed with Indiana.  The link to that form is included in the link in the 2nd bullet.