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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). Please refer to the California Schedule CA (540) Instructions for additional information.

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 Depreciation and Amortization or Passive Activity Loss adjustments in the California Q&A:

  1. From within your TaxAct® return (Online or Desktop), click on the State tab
  2. Click California directly below the Basic Info tab
  3. Click Adjustments to expand the category and then click Depreciation and amortization adjustments (Form 3885A) or Passive Activity Loss Limitations (Form 3801)

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

To enter Other adjustments field in the California Q&A:

  1. From within your TaxAct return (Online or Desktop), click on the State tab
  2. Click California directly below the Basic Info tab
  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
    Note. 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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