I'm having a similar issue.  If we add the Resident Taxes Paid by the Entity back on Schedule K as an "Other Addition" on line B5, this will not adjust the state distributable income up by the amount of the state tax paid that was deducted on the federal return.  This will lead to a false limitation on the amount of deductible tax. 

For example, Client A has distributable income per the federal return of $80k.  $17k was paid in on 510D on the resident shareholders' behalf in December.  $80k shows as net distributable income, which limits the deduction to $6,400 ($80k x 8% = $6,400).  The net distributable income should be $97k, allowing a $7,760 deduction ($97k x 8% = $7,760).  

Thoughts?