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Screen CA4835 - California Farm Rental (1040)
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Overview
Use this screen to calculate California farm rental income and the California Schedule CA Reconciliation Report.
General Information
General information that appears in this section is automatically transferred from the federal 4835 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 4835 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 Percent of federal allocated to state
field entered in the federal St CO Screen with postal code CS
(California Sources). 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 4835 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 4835 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 4835 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 4835 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 4835 Screen.
Gross income adjustment
Use this field to adjust Total Sources of Gross income under California law.
Expense adjustment
Use this field to adjust Total Sources of Total expenses under California law.
Section 179 / 280F Recapture
Information appears in the shaded fields from data entered in the federal 4835 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.Disallowed excess farm losses (Force)
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 it not used, UltraTax CS defaults to 100 percent when the postal code in the federal 4835 Screen is
CA
, and 0 (zero) percent when the postal code in the federal 4835 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 4835-2 and St CO Screens.
Passive activity code
The passive activity code entered in the federal 4835-2 Screen transfers to this field. Code
4 Real estate professional
is not applicable to California and is not available in the fieldview attached to this field. UltraTax CS automatically changes a code 4 Real estate professional
entered in the federal 4835-2 Screen to code 2 Rental real estate w/active participation
in this field. The code may be changed as needed to code 1 Other passive
when the additional loss deduction for rental real estate activities is not applicable to the activity.Preference items - Depreciation
Items coded
DEPR
(Depreciation on property-post 1986) entered in the Preference Items
statement dialog on the federal 4835-2 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 4835-2 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 4835-2 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)
Operating / … / Section 179 carryover
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.