Thank you for your content on the PTE Tax. Your videos have been more helpful than the Franchise Tax Board or any other resource. Can you please do a video explaining how to claim the PTE tax credit? Specifically, how to properly fill out form 3804-CR, and how that transfers to form 540? Thank you!
Thank you for the video, but if i am getting this correctly, in the scenario you are presenting, the net effect is that the company is paying $26K more in the corporate side to save $13K in the personal return so the net effect is that they are still better off NOT electing PTE right? because they will end up paying $26K from the business to save $13K? it doesnt make sense...
This is a good video. I had to watch a couple of time to figure out the numbers and still not sure why wouldn't the tax of $24,647 be added back to CA income?
Looks like you and I have the same question. If the CA adjustments were made, shouldn't cell C38 and D38 be the same number? If the PTE tax was not paid, you get the number in cell C38. But if it was paid, and then added back in for CA income purposes, then shouldn't the number in cell D38 be the same as C38? Not sure what I am missing.
@@veronicabj The difference between C33 and D33 is the $24,647. C38 and D38 should have remained very similar. CA itemized deductions are phased out which could cause the small difference. Nevertheless, CA taxable income should have increased by $24,647. Sure would love to see how they arrived at taxable income. That would explain alot.
@@noelbaca3028 I just reviewed the spreadsheet again and you are both correct. Thank you for brining this to my attention. C38 and D38 should be the same. Noel, you are also correct in that the difference between the federal and CA taxable income is because of phase-outs by CA.
What about when you don't have a corporation but you receive a K-1 from your employer? It's a partnership K-1. Do you use the same method illustrated for the personal returns only?
This is a great video, and I was able to follow along and everything was making sense. However, I got confused at the end with the taxable income amounts for the CA Personal. For CA Personal, shouldn't the taxable income amounts be the same whether or not you do the PTE tax? I can't figure out why you have them as different amounts. I hope you can explain. Thank you.
The $24,647 ($265,022 * 9.3%) reduces the taxable income when making the election, but shouldn't it be added back to CA income as a CA non-deductible expense from the K-1?
