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Screen CAAMT - California Alternative Minimum Tax (1040)

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Overview

Use this screen to complete the following:
  • Part I of Schedule P (540), Alternative Minimum Tax and Credit Limitations - Residents
  • Part I of Schedule P (540NR), Alternative Minimum Tax and Credit Limitations - Nonresidents or Part-Year Residents
Depreciation and amortization information transfers directly to this screen from the asset module and then transfers to Schedule P (540) or (540NR).
Depreciation and amortization fields in this input screen may not apply to each client. UltraTax CS provides a global option regarding the entry of asset information. These fields are not applicable when the asset module method of data entry is selected.
If you are not using the asset module or wish to override depreciation or amortization amounts on a form, you must enter the information in the CADepr, CAAMT, CASale, and CA8824 Screens.
Although you must calculate AMT versions of certain tax forms (such as Forms 3526 and 3801), the instructions for Schedule P (540) state that the refigured forms should not be attached to the return.

Adjustments and Preferences

Enter California adjustments and preferences based on total income in this section. UltraTax CS uses this information to complete Part I, Adjustments and Preferences, of Schedule P (540) or Schedule P (540NR).
Amounts entered into individual fields in this screen are reported on Schedule P regardless of whether or not the taxpayer is considered a "Qualified taxpayer" for AMT purposes.
Qualified taxpayer (Force)
A Qualified taxpayer for AMT purposes is a taxpayer who has at least one trade or business and whose aggregate gross receipts from all trade or business activities is less than $1,000,000. A qualified taxpayer excludes adjustment and preference items related to trade or business activities on Schedule P, Part I and reports the income from trade or business activities on the Schedule P line for AMTI exclusion. A taxpayer is not a qualified taxpayer if aggregate gross receipts exceeds $1,000,000. A taxpayer who is not a qualified taxpayer for AMT purposes includes all adjustment and preference items on Schedule P and omits trade or business income from the line for AMTI exclusion. Regardless of whether or not a taxpayer is a qualified taxpayer, any adjustment and preference items not related to trade or business are still reportable on Schedule P.
UltraTax CS automatically calculates aggregate gross receipts from trade or business activities for AMT purposes. When this field is blank, a not required statement prints listing the income included in aggregate gross receipts.
Fields in Part I (Adjustment and Preference Items) of Schedule P (540) and Schedule P (540NR) may have a component attributable to trade or business, a component not attributable to trade or business, or both. UltraTax CS reports adjustment and preference item amounts on Schedule P as follows:
  • Amounts with only a component not attributable to trade or business:
     UltraTax CS reports the adjustment or preference item on Schedule P whether or not the taxpayer is a qualified taxpayer.
  • Amounts with only a component attributable to trade or business:
     UltraTax CS omits the adjustment or preference item on Schedule P if taxpayer is a qualified taxpayer and reports the item on Schedule P if taxpayer is not a qualified taxpayer.
  • Amounts with both a component attributable to trade or business and a component not attributable to trade or business:
     UltraTax CS defaults to reporting the entire adjustment or preference item on Schedule P whether or not the taxpayer is a qualified taxpayer. If taxpayer is a qualified taxpayer, UltraTax CS displays a diagnostic message when such adjustments and preference items are reported on Schedule P. Use the fields on this screen to change the amounts shown on Schedule P.
Use this field to force the return to qualify or disqualify for the adjustments and AMTI exclusion on Schedule P.
Post-1986 depreciation
UltraTax CS automatically calculates the post-1986 depreciation based on data entered into the asset module and the CA4835, CAC, CARent, CAF, CAK1-3, and CAK1T-2 Screens. To adjust the calculated amount, enter an amount in this field.
California qualified stock options
UltraTax CS defaults to amounts entered in the federal AMT Screen as incentive stock options combined with ordinary income entered in federal Screen Inc with Code
22
, Excludable stock options (CQSO): CA to calculate Schedules P and P (540NR). Use this field to enter an amount different than the calculated amount.
Charitable contributions of certain property
UltraTax CS automatically calculates the difference in charitable contributions allowed for AMT and for regular tax. This amount is included in the related adjustments on Schedules P (540) and (540NR), Page 1. Use this field to force an amount for the charitable contributions adjustment other than the calculated value. Amounts entered in this field are added to the amount entered in the All Source
Related adjustments
 field.
Alternative minimum taxable income exclusion
Qualified taxpayers (for AMT purposes) may exclude trade/business income from the calculation of AMTI. UltraTax CS treats the following components of income as trade/business income for purposes of the AMTI exclusion:
  • Schedule C income
  • Rent/royalty income
  • Farm income
  • Other income coded as self-employment income
  • Pass-through income (Partnership, S Corporation, Trust, Estate)
  • Capital gains/losses entered on federal Screen B&D coded
    B
     for Business
  • Capital gains from K1 activities (Partnership, S Corporation)
  • Interest and dividends income from K1 activities (Partnership, S Corporation)
  • Form 4797 (Schedule D-1) gains
Enter qualifying trade/business income (eligible for exclusion from AMTI) in this field to force an amount different than the calculated amount.

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