Schedule PTE - BD: Schedule PTE - BD (2025)
Missouri · Missouri DOR · Used for tax years 2025
Missouri Schedule PTE-BD calculates the Missouri Business Income Deduction reported on Form MO-PTE. It lists income and deductions from federal Schedule K, the portions reportable to individual owners, and the portions from Missouri sources.
Who files this form
Complete the 2025 Missouri Schedule PTE-BD when computing the Missouri Business Income Deduction on Form MO-PTE.
The schedule uses income and deduction amounts from Schedule K of federal Form 1065 or Form 1120-S to calculate the deduction.
What you'll need
Have these forms and details available to complete the schedule:
- Federal Form 1065 or Form 1120-S, Schedule K: These provide the income and deduction amounts used on the schedule.
- Schedule K-1s issued to individual members: You may use these to identify the amounts reportable to individuals for Column B.
- Information showing which amounts come from Missouri sources: Column C includes only the Missouri-source portion of Column B.
- Form MO-PTE: Enter the deduction calculated on Schedule PTE-BD, Line 9, on Form MO-PTE, Line 6.
- Entity identification details: The schedule asks for the name, Missouri Tax I.D. Number, Federal Employer I.D. Number, and Charter Number.
Common mistakes
- Including excluded income in Column A. Do not include business income that, ignoring Section 143.022, RSMo, would be subtractable or deductible in determining an individual partner's or shareholder's Missouri taxable income. The form gives certain agricultural disaster or emergency compensation payments as an example.
- Putting all income in Column C without checking its source. Analyze each Column B amount and include only the Missouri-source portion in Column C.
- Including every item labeled Other Income or Other Deductions. Lines 5 and 7 have special eligibility rules. Include only items that meet the tests printed in the schedule's instructions.
- Reporting a negative amount on Line 8. Reduce the total by negative amounts, but do not report less than $0.
- Leaving the deduction off Form MO-PTE. Enter the Line 9 amount on Form MO-PTE, Line 6, too.
Questions people ask
How is the business income deduction calculated?
Line 8 totals Column C, Lines 1 through 7, reduced by negative amounts, but not below $0. Multiply Line 8 by 20% to calculate the deduction on Line 9.
What belongs in Column B?
Enter the portion of Column A reportable to individual members. This includes entities treated as not separate from individuals for Missouri income tax purposes.
How do I determine whether income comes from Missouri sources?
The instructions say the source is where the income is produced. An item is from Missouri sources if it was produced by an overall effort centered in Missouri. Income or deductions from a partnership or S corporation business carried on only in Missouri are wholly attributable to Missouri.
Is rental income from property outside Missouri always included?
No. The instructions say rental income is not from Missouri sources when both the rental property and its management are outside Missouri.