Why is my MT State Apportionment factor dividing by 3 when I only have two factors used?

[sjrcpa]

Is your third factor zero?

Or nonexistent?

[lisa-pisteos-net]

My third factor is non existent  - I only have 2 factors

[PhoebeRoberts · Accepted solution]

https://mtrevenue.gov/2022/02/07/senate-bill-376-revised-montanas-income-apportionment-formula/

Pursuant to SB 376 (2021), for tax years beginning after June 30, 2021, all multistate businesses operating in Montana will use a new calculation that double-weights the receipts factor.

Previously, taxpayers in Montana used an equally-weighted three-factor apportionment formula, comprised of a business’s property, payroll, and receipts in an equal 1:1:1 ratio with three factors.

The new calculation includes a 1:1:2 (property : payroll : receipts x 2) ratio and increases the number of factors in the apportionment calculation to four.

[lisa-pisteos-net]

Thank you for answering my now (stupid) question 

I appreciate your time and willingness to help!!

[PhoebeRoberts]

I stopped calling Lacerte support about the 5th time that the answer was "because that's how the forms instructions say to do it." Happens to the best of us!

For my multi-state entities, I have an Excel that calculates what the apportionment should be, so I know I did my input correctly enough to get the appropriate output.  States change their methods way too often!

[lisa-pisteos-net]

Hi Phoebe - Thank you for helping out on that MT question - 

I have another that I thought I would run by you - 

I input my 1099-MISC which had MT withholding but nothing from those 1099's flow to the MT PTE tax return (specifically to line 23a).

When I click on line 23a it routes me to the MT Composite input form and if you scroll down there is a MT withholding input box. When I put the withholding amount in that box it populates line 23a but also populates the K-1 part 5 line 4. 

Line 4 (per the instructions) should be zero but there is no way for me to override that number.

Have you had any success inputting a 1099-MISC with MT state withholding and having it poplulate the PTE return line 23a automatically?

[PhoebeRoberts]

It's been a while since I've had a MT entity. My recollection is that the method that works is to enter it in the Composite input form, then override MT royalty withholding distributed to partner on each K-1 in the Partner Miscellaneous Info section. My dummy return seems to say that method still works, but it's possible I've just missed putting in enough input.

[lisa-pisteos-net]

Thanks for the advice - unfortunately they must have changed their program because it will not allow me to override their amounts. I have contacted their support line and will try to figure it out with them or just file my MT return via paper.

They should link the 1099-MISC input which is populated with the MT withholding to the MT return - but they don't.

Have a great weekend,

Lisa

[lisa-pisteos-net]

I was able to find that override - where you said it would be. That did allow me to have a zero on the partners MT k-1 part 5 line 4 -

You are a gem - thank you thank you!!

[PhoebeRoberts]

Glad it worked!