California law adjustments on a 1041 return

UltraTax CS reports the following items as noted in California (FTB Publication 1001):
  • Income from U.S. obligations - treated as tax exempt income
  • Municipal income from other states - treated as taxable income
  • State income tax refund - not reported as income
  • Railroad retirement benefits (federal screen 1099R) - not reported as income
  • Social security benefits (federal screen Income) - not reported as income
  • Any taxes other than property taxes - not deductible as an expense
  • Domestic Production Activity Deduction (Form 8903) - not deductible as an expense
  • Bonus depreciation - CA doesn't allow the bonus depreciation, and depreciation calculates the amount before the bonus depreciation
  • Basis differences - adjusted for on forms

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