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Screen CAInc-2 - California Section 179 and Investment Interest Expenses (1040)

Overview

Use this screen to complete Form 3885A, Part II; the California Section 179 Expense Deduction Worksheet; and Form 3526.

Section 179 Expense

UltraTax CS uses information in this section to complete the California Section 179 Expense Deduction Worksheet and Form 3885A, Part II.
Carryover information is used to calculate an adjustment to federal itemized deductions on Schedule CA(540) as well as adjustments to alternative minimum taxable income on Schedule P(540).
The maximum dollar limitation for calculating the California Section 179 Expense Deduction Worksheet and Form 3885A defaults to information entered in the asset module. Use this field to force an amount different than the calculated amount. Amounts entered here transfer to the California 179 Expense Deduction worksheet, line 1, located in forms view within the 179 folder.
Use this field to force an amount different than the calculated amount for business income. This amount transfers to the California Section 179 Expense Deduction Worksheet, line 11, located in Forms view within the 179 folder.
UltraTax CS defaults to the regular tax business income for calculating the amount of section 179 allowed for AMT purposes. Use this field to enter a business income for AMT different than for regular tax.

Investment Interest Expense Deduction

Form 3526 defaults to the federal amount entered in the
Investment interest
 statement dialog in the federal A Screen and California CAK1-2 Screen. Use this screen to enter an amount different from the federal amount.
UltraTax CS proformas the amount of disallowed investment interest expense from
2023
 Form 3526. When these fields are blank, Form 3526 defaults to the federal amount entered in the federal CO Screen, located in the Carryovers folder. Use these fields to enter an amount different from the federal carryover amount.
UltraTax CS automatically calculates the amount of net capital gains from disposition of property held for investment to include in investment income. The amount of gains included on Form 3526 as investment income is calculated only to the extent necessary to deduct all investment interest expenses in the current year. To elect a different amount, enter the applicable amount in this field.
UltraTax CS automatically calculates the investment expenses from data entered in the federal A Screen and the CAK1-2 Screen. Enter an amount to force the investment expenses to an amount other than the calculated amount.
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