California FTB Issues Frequently Asked Questions on Pass-Through Entity Elective Tax

The California Franchise Tax Board March 1 issued frequently asked questions (FAQs) on the pass-through entity (PTE) elective tax for individual income and trust income tax purposes. The FAQs include: 1) how and when to make PTE elections; 2) what is included in a qualified entity’s qualified net income; 3) who gets the PTE tax credit and in what order is it applied; 4) how the five-year PTE credit carryover applies; and 5) how to calculate other state tax credits (OSTC) when a qualified taxpayer has both OSTC and PTE tax credits. The FAQs also include information on how to ...