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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. 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 Depreciation and Amortization 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 State to expand, then click California (or CA). On smaller devices, click in the upper left-hand corner, then click State.
  2. Click Adjustments in the California Quick Q&A Topics menu to expand, then click Depreciation and amortization adjustments (Form 3885A) or Passive Activity Loss Limitations (Form 3801).
  3. Click Edit to open a Quick Entry window, enter all of the appropriate information, then click Save & Close.

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

To enter Other adjustments in the California Q&A:

  1. From within your TaxAct return (Online or Desktop), click State to expand, then click California (or CA). On smaller devices, click in the upper left-hand corner, then click State.
  2. Click Adjustments in the California Quick Q&A Topics menu to expand, then click Adjustments to federal income and adjustments.
  3. Continue with the interview process to enter all of the appropriate information.
  4. On the screen titled California - Adjustments - Rental or Royalty Income, enter the other rent/royalty adjustment amounts, then click Continue (This screen will only appear if there is an amount reported on IRS Form 1040, Line 17).

Note. 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.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.


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