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Adjustments due to differences between California Schedule K-1 and IRS Schedule K-1 are entered on California Schedule CA (540) California Adjustments - Residents, Line 17 (columns B and C).

Depreciation adjustments are made on California Form 3885A Depreciation and Amortization Adjustments if there is an IRS Form 4562 created for the K-1. Passive Activity Loss adjustments are made on California Form 3801 Passive Activity Loss Limitations.

To enter either of these adjustments in the California Q&A:
  1. From within your TaxACT return (Online or Desktop), click on the State Q&A tab
  2. Click California directly below the blue tabs
  3. Click Adjustments to expand the category and then click Depreciation and amortization adjustments (Form 3885A) or Passive Activity Loss Limitations (Form 3801)

Any other adjustments are entered as outlined below and will be incorporated into the total adjustments on California Schedule CA, Line 17.

To access this adjustment field in the California Q&A:

  1. From within your TaxACT return (Online or Desktop), click on the State Q&A tab
  2. Click California directly below the blue tabs
  3. Click Adjustments to expand the category and then click Adjustments to federal income and adjustments
  4. Continue to the screen titled California - Income Adjustments - Rental or Royalty Income where the adjustment may be made
Please note that this screen will only appear if there is an amount reported on IRS Form 1040, Line 17.

While the printed Schedule CA will show these adjustments in total on Line 17, the screen view of the Schedule CA in TaxACT will show three lines, one for each of these adjustments.

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