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 partnershipsAn entity permitted or required to be in a combined reporting groupWho 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 taxA 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 membersExcept for a disregarded single member LLC that is owned by an individual, fiduciary, estate, or trust subject to California personal income taxCorporationPartnership ..... And here it says Partnership can elect this PTE tax? Could you please explain me finally can SMLLC and partnerships elect PTE tax?

S

Sam Hopi

Question

PTE tax

Forum|Forum|2 years ago
December 30, 2023
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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?