PTE-RP: Pass-through Entity Tax for Resident Partners (2024)
Minnesota · Minnesota DOR · Used for tax years 2024
Minnesota’s 2024 Schedule PTE-RP calculates pass-through entity tax attributable to Minnesota resident partners. It allocates 100% of resident partners’ distributive shares to Minnesota for PTE tax purposes, with the resulting tax reported on Schedule PTE.
Who files this form
Complete and file 2024 Schedule PTE-RP if your partnership is filing Schedule PTE and has one or more partners who are Minnesota residents and qualifying owners during 2024.
The form also applies to LLCs taxed as partnerships that elect to pay tax at the entity level. Include amounts attributable to Minnesota resident partners.
What you'll need
Have these forms and records available to complete Schedule PTE-RP:
- Schedule PTE, which you file with Schedule PTE-RP and use to report the result.
- Federal Schedules K-1 (1065) for resident partners.
- Resident partners’ Schedules KPI for the additions and subtractions covered by the line instructions.
- Records of applicable bonus depreciation, state income taxes, federal tax adjustments, and other amounts listed on the schedule.
- Prior-year bonus depreciation and 2019 Section 179 expensing records, if claiming the delayed subtractions.
- The partnership or LLC’s name, FEIN, and Minnesota Tax ID Number.
How to file
File Schedule PTE-RP with Schedule PTE.
- Enter the entity’s name, FEIN, and Minnesota Tax ID Number, and identify it as a partnership or LLC.
- Complete lines 1 through 13 using amounts attributable to Minnesota resident partners.
- Combine lines 1 through 5 on line 6. Add lines 7 through 10 on line 11, then subtract line 11 from line 6 on line 12.
- Multiply line 12 by 9.85% and enter the result on line 13. Report that amount on Schedule PTE, line 28.
- Include resident partners’ income and credit distribution information on Schedule PTE, Part 2.
The supplied text does not provide a mailing address or e-filing directions.
Common mistakes
- Including nonresident amounts: The form directs you to complete lines 1 through 13 with amounts attributable to Minnesota resident partners.
- Using the wrong sign on line 3: Enter adjustments reported on Schedule KPI, line 6, as positive amounts. Enter adjustments reported on Schedule KPI, line 19, as negative amounts.
- Skipping the Schedule KPI checks: The instructions require specified amounts to match the corresponding totals reported on resident partners’ Schedules KPI. For line 1, match the federal bonus depreciation total to Schedule KPI, line 4, before multiplying by 80%.
- Leaving information off Schedule PTE: Transfer Schedule PTE-RP, line 13, to Schedule PTE, line 28, and include resident partners’ income and credit distribution information in Schedule PTE, Part 2.
Questions people ask
How is Schedule PTE-RP different from Schedule PTE?
Schedule PTE-RP allocates 100% of a resident partner’s distributive share from the partnership to Minnesota for PTE tax purposes. The result is reported on Schedule PTE.
Does this form apply to LLCs?
Yes. The form covers LLCs taxed as partnerships that elect to pay tax at the entity level.
What tax rate does Schedule PTE-RP use?
For 2024, line 13 directs you to multiply line 12 by 9.85% (.0985).
Where do I report the tax calculated on this schedule?
Enter the amount from Schedule PTE-RP, line 13, on Schedule PTE, line 28. File Schedule PTE-RP with Schedule PTE.