Thanks for this article Tom. Do you think you could do a worked example with numbers with two scenarios, one where it is beneficial to use the PTE election and one where it is not?
Am I correct with my understanding of the following -
LLC makes PEET election for 12-31-21 year end. PEET tax, say $9,300 to FTB was paid in March 2022, using Form 3893.
The $9,300 would be deducted on LLC's 12-31-22 1065 tax return. But the $9,300 is applied to partner's 2021 540 retun and can be used against 2021 540 tax liability, or refunded if credit is larger than 540 tax due?
Thanks for this article Tom. Do you think you could do a worked example with numbers with two scenarios, one where it is beneficial to use the PTE election and one where it is not?
Appreciate it!
Am I correct with my understanding of the following -
LLC makes PEET election for 12-31-21 year end. PEET tax, say $9,300 to FTB was paid in March 2022, using Form 3893.
The $9,300 would be deducted on LLC's 12-31-22 1065 tax return. But the $9,300 is applied to partner's 2021 540 retun and can be used against 2021 540 tax liability, or refunded if credit is larger than 540 tax due?
Thank you so much!!!