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Screen CAC - California Business (1040)

Overview

Use this screen to calculate California business income and the California Schedule CA Reconciliation Report.

General Information

General information that appears in this section is automatically transferred from the federal C Screen.

Income and Expenses

Use these fields to calculate the California Schedule CA Reconciliation Report.
For all returns, Total Sources calculations always include 100 percent of income and expenses entered in the federal C Screen.
For part-year and nonresident returns, activities with postal code
CA
 that are not allocated using the state allocation spreadsheet include 100 percent of income and expenses in the California Sources calculations. Activities with any other postal code exclude all income and expenses for the California Sources calculations. When data is entered into the state allocation spreadsheet, California Sources amounts are calculated by multiplying the total income and total expenses by the amount in the
Percent of federal allocated to state
 field entered in the federal St CO Screen with postal code
CS
 (California Source). Schedule R is available in the California Non Calculating folder to calculate the instate percentage.
If allocating or apportioning income, enter a percentage in the allocation spreadsheet on the federal C Screen as follows:
NONRESIDENT:
Use Schedule R in the non-calculating folder to determine the percentage to enter in the CA (instate) sources column of the allocation spreadsheet on the federal C Screen.
PART-YEAR RESIDENT:
All income earned during residency period; no income earned during nonresidency period:
Determine the ratio of income earned during the residency period to income earned during the year and enter as a percentage in the CA (instate) sources column of the allocation spreadsheet on the federal C Screen.
All income earned during the nonresidency period; no income earned during the residency period:
Use Schedule R in the non-calculating folder to determine the percentage to enter in the CA (instate) sources column of the allocation spreadsheet on the federal C Screen.
Income earned during both residency period and nonresidency period:
Determine the income earned from all sources during the residency period.
Determine the income earned from all sources during the nonresidency period. Use Schedule R in the non-calculating folder to determine the percentage of all income earned during the nonresidency period that is attributable to CA sources.
Combine the income earned during the residency period with the income attributable to CA sources during the nonresidency period to determine income taxable to CA.
Divide income taxable to CA by the income from all sources for the year to determine the ratio to enter (as a percentage) in the CA (instate) sources column of the allocation spreadsheet on the federal C Screen.
Use this field to adjust Total Sources of Gross income under California law.
Use this field to adjust Total Sources of Total expenses under California law.
Information appears in the shaded fields from data entered in the federal C Screen or in the asset module. Use the
Force
 fields to force an amount different than the calculated amount appearing in the shaded default fields. The difference between the state amount and the federal amount is included in the California return as an adjustment to income.
For resident California returns, UltraTax CS defaults to disallow the amount of excess farm loss that was calculated on the federal return on the California resident return. Use this field to enter an amount if different from the calculated amount. For part-year and nonresident returns, the amount of loss disallowed for the instate income is calculated by multiplying the total disallowed excess farm loss by the instate ratio entered in the state allocation spreadsheet for this activity. When the allocation spreadsheet is not used, UltraTax CS defaults to 100 percent when the postal code in the federal C Screen is
CA
, and 0 (zero) percent when the postal code in the federal C Screen is not
CA
.

Passive Activity and Other Information

Information that appears in this section is automatically transferred to this input screen from the federal C-2 and St CO Screens.
Items coded
DEPR
 (Depreciation on property-post 1986) entered in the
Preference Items
 statement dialog on the federal C-2 Screen transfer to this statement dialog. This amount is used on Schedule P (540) or Schedule P (540NR). Use this statement dialog to change the post-1986 depreciation amount from this activity to include on Schedule P. Use the CAAMT and CAAMT-2 Screens to force the overall post-1986 depreciation amount reported on Schedule P.
Schedule P also uses amounts entered in the
Preference Items
 statement dialog on the federal C-2 Screen with the following codes:
  • CIRC
     (Circulation costs)
  • CONT
     (Long-term contract)
  • DEPL
     (Depletion adjustment)
  • FARM
     (Tax shelter farm activities)
  • MINE
     (Mining costs)
  • PATR
     (Patron's adjustment)
  • RESX
     (Research and experimental costs)
The aforementioned amounts do not transfer to this statement dialog. Use the CAAMT and CAAMT-2 Screens to force the overall amounts reported on Schedule P.
Amounts in the
Preference Items
 statement dialog on the federal C-2 Screen with the following codes are not used by the California return and do not transfer to this statement dialog:
  • DP87
     (Depreciation on property- pre 1987)
  • PERS
     (Accel dep on personal property-pre 1987)
  • REAL
     (Accel dep on real property-pre 1987)
When state-specific carryover information is available for proforma, the information is proforma'd to the corresponding federal input screen for the activity. Total Sources information is proforma'd to the federal St CO Screen with postal code
CA
. California Sources carryover information is proforma'd to the federal St CO Screen with postal code
CS
 (California Source). The information is federal-to-state transferred to this screen.
California Sources
 fields that are blank are assumed to be zero; the calculation does not default to Total Sources amounts.
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