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Screen CAK - California Shareholders' Share of Items (1120)
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Overview
Use this screen to complete Schedule K for Form 100S. the application uses the information entered here, as well as the federal Schedule K amounts, to calculate the California amounts. Data from this input screen is also used to calculate the shareholders’ K-1s. The application calculates and transfers the following California adjustments to Form 100S, Schedule K.
- Ordinary income and Schedule F depreciation (excluding Section 179), amortization, and state taxes adjustment
- Net income (loss) from rental real estate activities adjustment
- Gross income from other rental activities adjustment
- Expenses from other rental activities adjustment
- Royalties adjustment
- Net short-term capital gain / loss adjustment
- Net long-term capital gain / loss adjustment
- Net gain (loss) under IRC Section 1231 adjustment
- Other income for passive and business capital gains, and casualty / theft Section 1231 gains / losses adjustment
- Section 179 expense deduction adjustment
- Other deductions for passive income taxes and casualty / theft ordinary losses adjustment
- Depreciation adjustment on property placed in service after 12/31/86
- Tax preferences for accelerated depreciation on real property and accelerated depreciation on leased property adjustment
As noted in the CAAdj screen, the capital gains transactions for S Corporations can be classified as portfolio, passive, or business activity. The application calculates the adjustment to portfolio activity amounts on lines 7 and 8, and the business and passive activity amounts on line 10b. The California passive amounts are also separately stated on line 17d of the shareholder’s K-1. Note that passive activity income is not reduced by passive income tax due.
note
- Use the CAKSep screen to complete Schedule K, line 17d, and Schedule K-1, line 17d.
- When entering California adjustments, the application calculates the California amounts by adding the federal amounts in column B of Schedule K and the California adjustments in column C. The amounts in column B transfer from the federal Schedule K.
- Don’t enter amounts from a K-1 pass-through entity in this screen. Use the CAK1, CAK1-2, CAK1-3, and CAK1-4 screens for those amounts.
Income
Ordinary business income (loss)
Enter the California adjustment for ordinary income to add to the calculated amount. In the amount printed on Schedule K, line 1, column C, the application automatically includes the following:
- The state tax adjustment from Side 1 of Form 100S
- Alcohol fuel credit
- Biodiesel and renewable diesel fuels credit
- Built-In Gains tax difference
- Capitalized orphan drug credit
- Capitalized research credit
- Credit to Holders of Tax Credit Bonds
- Depreciation (excluding Section 179) and amortization
- Disabled access credit
- Employer childcare credit
- Employer pension plan credit
- Employer tip credit reduction
- Employment credit wages
- Energy efficient home credit
- Enterprise Zone hiring credit
- LAMBRA hiring credit
- Low sulfur diesel fuel production credit
- Ordinary gain (loss) from federal Form 4797, CA Schedule D-1 difference
- Orphan drug credit
- Pass-through entity (Sch K-1) Fed-CA difference
- Research credit Fed-CA difference
- State tax refund
Use this box to enter an amount to be added to the amounts included.
note
The application calculates the California adjustment for the difference between federal and state expense deduction for Section 179 recovery property and enters that amount on Schedule K, line 11, column c.
Net Section 1231 gain (loss) (Force)
The application calculates this amount from entries in the CASale screen. Enter
0
(zero) or an amount here to prevent the application from using the calculated adjustment based on Schedule D-1 as the default amount.Other portfolio income (loss)
The application transfers amounts from the
Other portfolio income
statement for the federal Schedule K to the statement attached here. Use this statement to enter any California adjustments or to allocate specific items. The application automatically calculates the California adjustment for other portfolio income from pass-through entities and includes the federal amounts, California adjustment, and California amounts for these items in the statement at print time. Do not
enter adjustments in the statement attached here for other portfolio income from a pass-through entity. Instead, use the CAStmtS screen to force or delete the California amount.Other income (loss)
The application transfers amounts from the
Other income or loss
statement for federal Schedule K to the statement attached here. Use this statement to enter any California adjustments or to allocate specific items. The application automatically calculates the California adjustment for the following items and includes the federal amounts, California adjustment, and California amounts for these items in the statement at print time.- Short-term business sales
- Long-term business sales
- Short-term passive sales
- Long-term passive sales
- Form 4684, long-term property
- Casualty or Theft Section 1231
- Other income from pass-through entities
Do
not
enter adjustments in the statement attached to here for the preceding items. Instead, use the CAStmtS screen to force or delete the California amounts.note
- If the application is calculating a built-in-gains tax and any of the preceding items are in the statement, it will adjust the California amount that appears in the printed statement to zero. The application won’t enable an adjustment since these taxes aren't deductible to California taxpayers. If a different result is required, select the entire row and delete it, and then enter the needed information.
- If exporting the Schedule K-1 information for any shareholders in this client from UltraTax/1120 to UltraTax/1040 or UltraTax/1041, complete the K-1 Export code, if applicable. Enter a code directly or select one from the dropdown.
- IRC Section 1202 treatment in R&TC Sections 18038.5 and 18152.5 has been ruled unconstitutional. These transactions are reported as long-term capital gain rather than as other income on Schedules K and K-1 of Form 100S.
Deductions
Charitable contributions
The application transfers amounts from the
Charitable contributions
(50 percent, 30 percent, and Qualified Disaster) statement in federal Schedule K to the statement attached here. Use this statement to enter any California adjustments. The application calculates the California adjustment for charitable contributions from pass-through entities and includes the federal amounts, California adjustment, and California amounts for these items in the statement at print time. Do not
enter adjustments in the statement attached here for charitable contributions from a pass-through entity. Instead, use the CAStmtS screen to force or delete the California amount.Noncash charitable contributions
The application transfers amounts from the
Noncash charitable contributions not requiring a Form 8283
(50 percent and 30 percent Noncash, and 30 percent and 20 percent Capital Gain Property) statement in the federal K screen to the statement attached here. Use this statement to enter any California adjustments. The application calculates the California adjustment for charitable contributions from pass-through entities and includes the federal amounts, California adjustment, and California amounts for these items in the statement at print time. Do not
enter adjustments in the statement attached here for charitable contributions from a pass-through entity. Instead, use the CAStmtS screen to force or delete the California amount.Portfolio deductions subject to 2% floor
The application transfers amounts from the
Portfolio deductions subject to 2% floor
statement for federal Schedule K to the statement attached here. Use this statement to enter any California adjustments or to allocate specific items. The application automatically calculates the California adjustment for deductions related to portfolio income from pass-through entities and includes the federal amounts, California adjustment, and California amounts for these items in the statement at print time. Do not
enter adjustments in the statement attached here for deductions related to portfolio income from a pass-through entity. Instead, use the CAStmtS screen to force or delete the California amount.Other portfolio deductions
The application transfers amounts from the
Other portfolio deductions
statement for federal Schedule K to the statement attached here. Use this statement to enter any California adjustments or to allocate specific items. The application automatically calculates the California adjustment for deductions related to portfolio income from pass-through entities and includes the federal amounts, California adjustment, and California amounts for these items in the statement at print time. Do not
enter adjustments in the statement attached here for deductions related to portfolio income from a pass-through entity. Instead, use the CAStmtS screen to force or delete the California amount.Other deductions
The application transfers amounts from the
Other deductions
statement for federal Schedule K to the statement attached here. Use this statement to enter any California adjustments or to allocate specific items. Note that the application calculates the California adjustment for the following items and includes the federal amounts, California adjustments and California amounts for these items in the statement at print time.- Form 4684, short-term losses from income-producing property
- Passive Income Tax
- Other deductions from pass-through entities
Do
not
enter an adjustment in the statement attached here for the preceding items. Instead, use the CAStmtS screen to force or delete the California amounts.Credits
Related to rental real estate activities
Use the statement to enter the credits related to rental real estate. The application calculates the California amount for credits related to rental real estate from pass-through entities and includes the amount in the statement at print time. Do
not
enter amounts in the statement attached here for credits related to rental real estate from a pass-through entity. Instead, use the CAStmtS screen to force or delete the California amount.Related to other rental activities
Use the statement to enter the credits related to rental real estate. The application calculates the California amount for credits related to other rental activities from pass-through entities and includes the amount in the statement at print time. Do
not
enter amounts in the statement attached here for credits related to other rental activities from a pass-through entity. Instead, use the CAStmtS screen to force or delete the California amount.Other credits
Use the statement to enter other credits. Note that the application calculates the California amount for the following items and includes these items in the statement at print time.
- California Competes credit
- College access credit
- Enterprise zone credit from Form 3805Z
- LAMBRA credit from Form 3807
- Motion picture and TV production credit from Form 3541
- New employment credit from Form 3554
- Research credit from Form 3523
- TTA credit from Form 3809
- Other credits from pass-through entities
Do
not
enter an amount in the statement attached here for the preceding items. Instead, use the CAStmtS screen to force or delete the California amounts.Withholding
Use Schedule R apportionment percent to calculate income subject to withholding
Mark this checkbox to have the California nondividend distributions multiplied by the Schedule R apportionment percent. This will proforma to next year.
Withholding on nonresident property distributions from Schedule K, line 16d (Force)
Enter the amount of withholding to be allocated to nonresident shareholders. If you leave this blank, the application calculates the withholding on nonresident distributions from Schedule K, line 16d, multiplied by the apportionment percent if the previous box is marked. The application adds this to the amounts entered in the Tax withheld box in the CAK1-3 screen, and reports the total on Schedules K and K-1. Note: Withholding from Forms 592-B or 593 may be allocated to the corporate entity-level tax or allocated to the shareholders, however the amount of withholding claimed at the entity level may not exceed the corporate tax liability. Any excess must be allocated to the shareholders. Use the Withholding (Forms 592-B, 593) box in the CAPmt screen to enter an amount allocated to the corporate entity-level tax. To report an amount allocated to shareholders, file Form 592 and 592-B by checking the box in File, Client Properties, then the California tab.
Income subject to withholding for all shareholders
Enter the amount of income subject to withholding for all shareholders. This will be added to the amount from Schedule K line 16d, property distributions (apportioned if the preceding box is marked).
note
This is NOT a force field. To indicate amounts for specific shareholders, use the force fields in View, Shareholder Information, California tab.
Withholding tax for all shareholders
Enter the amount of withholding tax for all shareholders. This will be added to the amount calculated as 7 percent of Schedule K line 16d, property distributions (apportioned if the preceding box is marked).
note
This is NOT a force field. To indicate amounts for specific shareholders, use the force fields in View, Shareholder Information, California tab.
Alternative Minimum Tax Items
Depreciation adjustment on property… / Amount
The application calculates the AMT preference and adjustment items as the difference between the CA and CA AMT columns in the asset module.
- If using the asset module, the application uses as the default the amounts calculated for certain adjustment and preference items.
- Ifnotusing the asset module, the application transfers the federal Schedule K-1 amounts for depreciation-related preferences and adjustments. These items are displayed in theCalculated Amountcolumn. To force these amounts, enter an amount in theCA Amountcolumn for a given item.
If you enter
0
(zero) here in the Calculated Amount
column, the application accepts it for data entry and calculations. This prevents the application from defaulting to the federal amount or the calculated amount. The application always transfers federal amounts from Schedule K, lines 15a through 15f, to the application. It uses these amounts to calculate lines 15a through 15e of California Schedule K in the absence of forced amounts.