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Texas Deductions and Tax Adjustment

SOLVEDby IntuitLacerte Tax2Updated September 23, 2021

Use Screen 54.431, Texas Franchise Tax, to enter Allowable Deductions.

Enter the amount of allowable deductions to be subtracted from apportioned margin. The following are the allowable deductions:

  1. A taxable entity may deduct 10 percent of the amortized cost of a solar energy device if the device meets the criteria in Sec 171.107(b). The deduction may not reduce apportioned margin below zero, and no carryover of unused deduction is allowed.
  2. A taxable entity may deduct 10 percent of the amortized cost of equipment used in a clean coal project if the equipment meets the criteria in Sec 171.108(b). The deduction may not reduce apportioned margin below zero, and no carryover of unused deduction is allowed.

Use Calculation method: 1=COGS, 2=compensation, 3=70%, 4=EZ, 5=less 1 million [O] to override the programs method of calculating Texas Franchise tax, Enter 1 to use the Cost of Goods Sold method, Enter 2 to use the Compensation method, Enter 3 to use the Percentage (70%) method, Enter 4 to use the EZ method or Enter 5 to use the less one million dollars method.

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