Passthrough K-1 Received Input

• Go to Sch E, p 2 - Partnership Passthrough (K-1 1065) worksheet > Expand Section 2 - Activity > State passthrough entity credit (a row just below Line 65) in the State Grid column coded to NY.
• Go to Sch E, p 2 - S Corporation Passthrough (K-1 1120S) worksheet > Expand Section 2 - Activity > State passthrough entity credit (a row just below Line 53) in the State Grid column coded to NY.
• Go to Sch E, p 2 - Fiduciary Passthrough (K-1 1041) worksheet > Expand Section 2 - Activity > State passthrough entity credit (a row just below line 43) in the State Grid column coded to NY.

Note

• The IT-225 Addition item A-219 will be distributed according to Ordinary Income Distribution percentage by default.

Override the IT-653 credit

1. Go to New York > Credits worksheet.
2. Expand Section 15 - Pass-through Entity Tax Credit (IT-653)
3. In column Activity No, input applicable passthrough activity number.
4. In column PTET Credit, input applicable NY K-1 code 653 credit amount related to the passthrough activity in step 3.
5. Repeat steps 3 and 4 for any additional passthrough K-1s received with PTET credit received.
6. Calculate the return.

Specifically Allocate / Distribute IT-653 Credit to Beneficiaries

• NY does not allow PTET tax credit received to be passed to beneficiaries.
  • "pass-through entity tax (PTET) credit (Form IT-653)
    Note: The trust is not permitted to distribute any PTET credit it
    receives to its beneficiaries. "
  • One exception is when the return is a Grantor Trust type.

Note

• IT-205, page 2, line 33 will be blank if 605(b)(3)(D) is selected.