LLC / S Corp and the new PTET tax payment

[DDB BN]

How should the net LLC income be calculated after back outs for an LLC that made the PTET election for 2021?  Example:  $100,000 LLC income, PTET payment = $6,850, net LLC income flows through to K-1 = $93,150.   The SS / Medicare tax ($6,580.84) deducted from $93,150 along with the Employer contribution profit sharing (17,313.83) for the member with adjusted net income of $69,255.33?  If not, then what is the way to approach this calculation when a PTET election is made?

[Belgarath]

I didn't know what a "PTET" was, so I googled it. I include one of the links below if anyone is interested. I'm sure there are zillions of other links!

https://www.tax.ny.gov/bus/ptet/

[Bird]

If the payment is reducing income for federal income tax purposes, and it is, then I think you have to subtract it.

[BG5150]

5 hours ago, Bird said:

If the payment is reducing income for federal income tax purposes, and it is, then I think you have to subtract it.

Do you subtract it from the gross K-1 or the net after all that other arithmetic we do?

If they are S-corp, is it figured into the W2, or it is the W2 comp reduced to get the comp?

[DDB BN]

Do you subtract it from the gross K-1 or the net after all that other arithmetic we do?

This is also my question.  As for the S Corp, it is my understanding that it does not impact the W-2, only K-1 earnings.

[Bird]

19 hours ago, BG5150 said:

Do you subtract it from the gross K-1 or the net after all that other arithmetic we do?

I'm not even sure what "gross K-1" means.  If the accountant says the number flowing from the K-1 is 93,150, that's what we're using.  (Unless someone convinces me otherwise.)

17 hours ago, DDB BN said:

As for the S Corp, it is my understanding that it does not impact the W-2, only K-1 earnings.

The W-2 is what it is.  

[BG5150]

5 hours ago, Bird said:

I'm not even sure what "gross K-1" means.  If the accountant says the number flowing from the K-1 is 93,150, that's what we're using.  (Unless someone convinces me otherwise.)

Box 14A.

i wasn't sure if we would have to reduce THAT for the PTET.

[Bird]

16 hours ago, BG5150 said:

Box 14A.

i wasn't sure if we would have to reduce THAT for the PTET.

I see...to be honest, I don't know if that has been reduced or not.  Best to ask the accountant.  I know there are certain expenses that are taken on the personal return and should be subtracted out and it seems likely this is one of them.

[BG5150]

Is this going to affect what we do?  This is for State tax.  Is income reduced on K-1s for state taxes?  If so, I would assume that it's been reduced by the time the K gets to me.  As far as I know, the subsequent calculations of plan compensation only involve the SE tax and a couple other things; but not state tax.