Pre-requisites

• Partners must be considered New York City residents to be included in the NYC PTET elective tax calculation:
  • Residency can be controlled 
    • Partners > Partner Information worksheet > Detail > line Resident City Code (Interview K-1, boxes 76-97) 
  • Or include partners with no city code on Partners > Partner Information worksheet:
    1. Go to State Worksheets > New York > Cities > New York City worksheet
    2. Select section General.
    3. In line Treat all blank city partners on federal partner information section as nonresident partners, select the checkbox. (Interview NYC1, box 39).
    4. Calculate the return.
• Eligible partner entity types are Individual, and Grantor Trust. 
  • Estate and Trust partner entity types are currently NOT included with the NYC PTET Wkst calculation.
  • Estate and Trust partners are currently included with the NY State PTET Wkst calculation.

Preparation of the NYC PTET Wkst and calculation

Method 1: Common State/City worksheet

1. Go to Common State / City > State PTE Return Generation worksheet.
2. In line New York City, select the checkbox under the Generate State PTE return column (Interview PTE-ST1, box 182).
3. Calculate the return.

Method 2: New York City worksheet:

1. Go to State Worksheets > New York > Cities > New York City worksheet.
2. Expand section - General. 
3. In line Electing to file PTET online (Interview NYC1, box 55) , select the checkbox
4. Calculate the return.

NYC PTET Worksheet Controls

Line 14a - override

1. Go to New York > PTET Worksheet  / Export.
2. Section PTET Options > line All PTET paid to NYS and NYC - override (Interview NY2, box 73), input expected amount.
3. Line Estimated PTET paid (Interview NY2, boxes 118-120), input amounts as they should appear on the New York State PTET Worksheet, line 14a.
4. Calculate the return.

Line 14b is derived from Federal worksheets

• Income / Deductions
  • Business worksheet > section Taxes and Licenses.
    • Grid State and City Taxes.
    • State = NY, PTE checkbox not marked, in columns State Based on Income and City Based on Income. (Interview A-3, boxes 60-105, 61-106, 63-108).
    • State codes other than NY.
      • PTE checkbox can be marked or not marked.
    • Columns State Based on Income and City Based on Income. (Interview A-3, boxes 160-181, 161-182, 162-183).
  • Rent and Royalty worksheet > section Expenses.
    • Grid Other Expenses.
    • Input Description, and Detail Code: PT, or CPT, and column Amount. (Interview E-1, boxes 60-105, 61-106, 63-108).
  • Sch F / Farm / 4835 worksheet.
    • Section Expenses > line Pass-through entity tax (PTE) (N/A 1120). (Interview F-2, box 92).

Override NYC PTET Credit available to Partners

1. Go to New York > PTET Worksheet  / Export.
2. Section PTET Options > line NYC PTET Tax due, input applicable amount.
3. Calculate the return.

Print Presentation, Credit, and Addback Allocation

• New York State PTET Worksheet, PTE - Partner Information, and New York City PTET Worksheet are informational forms which print only in the Accountant and Client return copies.
• New York State PTE - Partner Information is for presentation purposes in the software.
  • Column Direct share of New York PTET Credit can be specially allocated using Special Allocation worksheet, section 2 Detail State code 34850.
  • Column Direct share of New York City PTET Credit can be specially allocated using Special Allocation worksheet, section 2 Detail State code 60905.
• NYC Schedule K-1 Equivalent
  • Line 13a: Allocation code 60903 - All income taxes and unincorporated business taxes.
  • Line 13b: Allocation code 60924 - NYS Pass Through Entity Tax (PTET) and similar taxes from other jurisdictions deducted from Federal Taxable Income.
  • Line 13c: Allocation code 60925 - NYC Pass Through Entity Tax (PTET) deducted from Federal Taxable Income (see instructions).

Notes

Tax year 2022:

• NYC K-1 Equivalent, page 2 will populate a partner's share of NYC PTET Credit.
• NYC PTE Wkst, line PTET Tax due will not populate unless New York State PTET Worksheet is also prepared.