Pass-Through Entity Tax Frequently Asked Questions

No. Single-member LLCs not taxed as a partnership or S corporation are not eligible to make the PTE tax election.

Yes. The PTE Tax election may satisfy your Minnesota filing requirement if you meet all these qualifications:

• You are a full-year Minnesota nonresident who is a partner, member, or shareholder in an electing entity
• Your only Minnesota source income is from an entity or entities that are filing and paying composite tax or PTE tax on your behalf

Owners who receive a share of gross profit or income from an installment sale reported to them by a partnership or S corporation are not eligible to have the PTE tax satisfy their filing requirement. (Added 9/14/2021)

No. A non-grantor trust is not a qualifying owner of a partnership.

You can make a PTE tax election by filing Schedule PTE, Pass-Through Entity Tax, no later than the due date or extended due date of the entity’s income tax return. However, you must make estimated payments or pay the amount due in full by the original due date for the return.

An extension to file is not an extension to pay. (Updated 1/12/2023)

Unless the entity’s agreement specifies how ownership is calculated, ownership is determined by the owners’ capital account percentage. (Added 11/12/2021)

Yes. The PTE tax election may be made on an amended return filed on or before the extended due date for the entity’s return.

It depends.

If the original due date has not passed, you may file another return to revoke the PTE tax election. 

The PTE election cannot be revoked after the original due date.

Yes, as long as the entity has not filed Schedule PTE, Pass-Through Entity Tax, or otherwise elected to file a return and pay the pass-through entity tax. The entity is not required to make the election even where they have made estimated tax payments for PTE tax. (Added 9/14/2021)