PatriciaV,
Based on my understanding, the whole PTET thing is a way for us to bypass the SALT cap, i.e. shifting state income tax to the partnership, and therefore allowing the members of the partnership to deduct more from my federal income. In other words, there has to be a benefit for my 1040 filing.
That's why I asked this question in the first place -- where is this benefit reflected in my 1040 filing? It has to come through the K-1, right? But my K-1 currently from the 1065 doesn't reflect any PTET paid to the state of VA, because I did 1065 first, before I filed VA502PTET. Did I do the 1065 wrong? I guess there are actually 2 questions here.
(1) Should the 1065 reflect the PTET paid to VA? If yes, where?
I am assuming it should be an expense against the income? Because the partnership only owns a rental property, the first page of 1065 is all blank. The income shows up only in form 8825. So should the PTET payment be listed on the first page of 1065 line 14 "taxes and censes", or should it be listed in 8825 line 11 "taxes".
(2) Timing: I paid the PTET in 2023, so do I have to wait until next year to show the payment as an expense in the 1065, or is there a way for me to work it in this year's return?
Thanks for all your help.
