Why do you think you need it? The consensus on the MD Assoc of CPAs list serve is that pass thru entities do not use this form. It is for individuals only who have one of the modifications. S Corps and Partnerships report their RELIEF act modifications the same way they do other modifications - to the owners.
So how do I report the adjustment for State and Local grant money received by the S-Corp? It is included in federal taxable income, but it is not taxable for MD. So it needs to show on the MD K-1 as a subtraction. To get the subtraction to carry to the MD K-1, I have entered the information in the appropriate fields in Lacerte (screen 44.271) in the 500LU section for "Coronavirus relief grant payment or loan forgiveness". This entry generates the critical diagnostic that the 500LU is not available.
If you have a "work-around", please share. I'd very much like to get these MD PTE returns filed.
"it needs to show on the MD K-1 as a subtraction" That is correct.
"I have entered the information in the appropriate fields in Lacerte (screen 44.271) in the 500LU section for "Coronavirus relief grant payment or loan forgiveness". This entry generates the critical diagnostic that the 500LU is not available. " I think Lacerte has this wrong re: the 500LU.
I've told all of mine they are being extended. Even if the 511 is released tomorrow, it won't be in the software tomorrow.
@swiftchariot Is Admin Release 6 redone yet? Last week's version was not in accordance with the law, nor were the 511 and instructions MD let "leak" ..
Here's a copy-paste from some correspondence I had with the comptroller's office:
Like other PTE subtractions, subtractions for coronavirus relief grants received by the PTE are passed to the member on the 510K-1, part C., line 5. The PTE will specify the source and amount of the grant on the K-1 part G.
Coronavirus relief payments received by a PTE and passed to a member do not need to be reported on the 502LU. Only Coronavirus relief grants or forgiven loans received by an individual themself should be reported on the 502LU.
So, if you don't need the 511, you should be able to file the 510 and report the subtraction appropriately (as an other subtraction).
Also, as an FYI to those who received MD loans that were converted to grants (COVID-19 Emergency Relief Loan Fund), that conversion took place in 2021 (despite the governor's announcement of the conversion in December 2020) and you'll therefore receive a 2021 1099, with a MD subtraction in 2021.
Administrative Release 6 has not been revised/posted yet.
So my links don't work. Try these:
Why isn't the software updated yet? 😏
Thank you, I called MD to address how it should be reflected on the personal return (502SU? Other?). She could not answer me and told me to email MD. Here is my email and will reply here when I get a response.
I am a CPA in Maryland and I am in need of guidance for filing a couple clients I have. These clients are PTE owners who received Covid Relief Grants from Maryland and/or their counties. The grants are not taxable in MD and have been reflected on the 510 K-1 as a Part C Line 5 Other subtraction which is reference in Part G. My question is in regards to the personal return. Where do I enter the Form 510 K-1 Part C Line 5 subtraction in the personal return? Is it a 502LU (I think not)? I Believe it should be shown on the 502SU, but what line do you recommend? And does a 1099G need to be attached to the personal as well as the business return?
Expedited help would be appreciated as the due date is soon.
Here is the response I received from MD.
Thank you for your recent email to the comptroller of Maryland.
The subtraction on the personal return would be on Line B of the 502SU
Maybe we should create a separate post showing how it all works based this post.