Skip to main content

Legal

Tax & Accounting

Trade & Supply

Risk & Fraud

News & Media

Books

Developers

Depreciation

Asset depreciation issue for 1065 California returns

If you enter asset information for a 1065 state or city return in the asset module, note that some 1065 state and city returns have depreciation issues.

Data calculation and transfer

After calculating depreciation and amortization, the application transfers amounts for assets in the
CA
 column to Form 3885P (Form 3885L for LLCs). The application then transfers the depreciation and amortization amounts to the various state forms. These include:
  • Form 565 (Form 568 for limited liability companies)
  • California Schedule F
  • California Farm Rental Income and Expenses Worksheet
  • California Form 8825 (including the California Rent and Royalty Schedule)
State adjustments and tax preference items transfer directly to the
Depreciation adjustment on property placed in service after 1986
 and
Adjusted gain or loss
 fields in the
CASepK
 screen.
State corporate ACE adjustments transfer directly to the
AMT Depreciation: Total Depreciation
,
ACE Depreciation: Post 1997 property
,
1990-1997 property
,
1987-1989 property
,
1981-1986 property
,
Sec 168(f) (1)-(4) property
,
Other property
, and
Basis adjustment on disposition
 fields in the
CAMisc
 screen.
Current-year asset disposition information transfers directly to Schedule D-1, California Form 4684 and California Form 8824. The application uses the state cost and depreciation to calculate the California sales and casualty and theft dispositions.

Asset basis transfers

Basis and accumulated depreciation amounts from the
Book
 column transfer as a default (or the CA column if no book information is entered) to Schedule L.

This article applies to:

  • Product: UltraTax CS
  • Return type: 1065 Partnership
  • State: California
  • Subject: Depreciation
Chat now

error-icon

Triva isn't available right now.

Check out the support page for our phone number and hours

error-close