Hi, I copied FTB pass-through PTE tax, and I can not understand some parts could you please clarify them.
I really appreciated it!
Do you qualify?
A qualifying PTE is an entity taxed as a partnership or S corporation.
It means only Partnerships and S Corp can elect this PTE tax, right?
Who does not qualify?
A qualified PTE does not include:
- Publicly traded partnerships
- An entity permitted or required to be in a combined reporting group
Who is a qualified taxpayer?
A qualified taxpayer is a partner, member, or shareholder of an electing qualified entity that is:
- An individual, fiduciary, estate, or trust subject to California personal income tax
- A disregarded single member LLC that is owned by an individual, fiduciary, estate, or trust subject to California personal income tax >>>> here but it syas a SMLLC can elect this one? I am confused!!
To be qualified, a taxpayer must consent to have their pro rata or distributive share and guaranteed payments included in the qualified net income of the electing qualified PTE.
A qualified taxpayer is not a:
- Disregarded business entity and its partners and members
- Except for a disregarded single member LLC that is owned by an individual, fiduciary, estate, or trust subject to California personal income tax
- Corporation
- Partnership ..... And here it says Partnership can elect this PTE tax? Could you please explain me finally can SMLLC and partnerships elect PTE tax?
