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Screen CAK-2 - California Schedule K - Deductions (1065)
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Overview
Use this screen to complete the Deductions section on Schedule K. If information transferred from UltraTax CS doesn't require additional data or coding, it displays it on the form only, not in the input screen.
UltraTax CS automatically uses amounts entered in UltraTax CS as the default amounts for Schedule K. The amounts are displayed directly on Form 565, Page 4 or 568, Page 5. All applicable statement items are transferred to the statements in this input screen. To change amounts for the California return, enter data in the applicable boxes or statements in this input screen.
Items that are calculated and automatically transferred from other California input screens to Schedule K are listed here:
- Line 12, Section 179 expense deduction
- Line 13e, Loss from Form 4684, short-term loss from income producing property
- Line 13e, California depreciation and amortization amounts from all activities (that were specially allocated and not reported by activity on the federal return)
Deductions
Contributions
UltraTax CS transfers relevant data from the federal K-2 screen and the totals from federal Form 8283 to these statements. To exclude an item from the state return, delete the amount, enter
0
(zero), or delete the entire line item from the statement. UltraTax CS displays the modified column in black and won't overwrite the new data with subsequent federal-to-state data transfers.UltraTax CS transfers the totals to California Schedule K, line 13a and generates a printed statement to support the different types of contributions.
Investment interest expense
UltraTax CS transfers investment interest expense from the federal K-2 screen to Schedule K, line 13b. To modify the federal amount for California purposes, enter the revised number.
Section 59(e)(2) expenditures amount
UltraTax CS transfers total expenditures to which section 59(e) applies from the Oil & Gas module and the federal K-2 screen. To modify the federal amount for California purposes, enter the revised number.
Section 59(e)(2) expenditures type
UltraTax CS transfers the type of expenditures from the federal K-4 screen. If the amount of 59(e) expenditures is from the Oil & Gas module, the type of expenditures defaults to Intangible Drilling Costs. To modify the default description, enter the revised text.
Portfolio deductions (subject to 2% floor) / Other portfolio deductions
UltraTax CS transfers relevant data from the federal K-2 screen to these statements. To exclude an item from the state return, delete the amount, enter
0
(zero), or delete the entire line item from the statement. UltraTax CS displays the modified column in black and won't overwrite the new data with subsequent federal-to-state data transfers.UltraTax CS adds the items entered in this statement to the following items.
- Guaranteed payments related to portfolio deductions
- California depreciation and amortization amounts related to portfolio deductions
- Deductions - royalty income
Health insurance considered guaranteed payments (subject to 2% floor)
UltraTax CS transfers health insurance considered guaranteed payments to partners entered in the federal K-2 screen to Schedule K, line 13e and Schedule M-2, line 3. To modify the federal amount for California purposes, enter the revised number.
Pensions and IRAs considered guaranteed payments (subject to 2% floor)
UltraTax CS transfers pension and IRAs considered guaranteed payments entered in the federal K-2 screen to Schedule K, line 13e. To modify the federal amount for California purposes, enter the revised number.
Other guaranteed payments (subject to 2% floor)
UltraTax CS transfers the relevant data from the federal K-2 screen to Schedule K, lines 4 and 13d. To modify the federal amount for California purposes, enter the revised number.
Start-up expenses / Organization costs (subject to 2% floor)
UltraTax CS transfers start-up expenses and organization costs entered in the asset module to Schedule K, Other deductions at print time. To modify the federal amount for California purposes, enter the revised number.
Other health insurance
UltraTax CS transfers other health insurance entered in the federal K-2 screen to Schedule K, line 13e. To modify the federal amount for California purposes, enter the revised number.
Educational assistance benefits
UltraTax CS transfers educational assistance benefits entered in the federal K-2 screen to Schedule K, line 13e. To modify the federal amount for California purposes, enter the revised number.
Dependent care benefits
UltraTax CS transfers dependent care benefits entered in the federal K-2 screen to Schedule K, line 13e. To modify the federal amount for California purposes, enter the revised number.
Commercial revitalization deduction from rental real estate activities
UltraTax CS transfers commercial revitalization deduction entered in the federal K-2 screen to Schedule K, line 13e. To modify the federal amount for California purposes, enter the revised number.
Penalty on early withdrawal of savings
UltraTax CS transfers penalty on early withdrawal of savings entered in the federal K-2 screen to Schedule K, line 13e. To modify the federal amount for California purposes, enter the revised number.
Other pensions and IRAs
UltraTax CS transfers other pension and IRAs entered in the federal K-2 screen to Schedule K, line 13e. To modify the federal amount for California purposes, enter the revised number.
Form 4684 short-term loss from income producing property
Select
Ptr Alloc
to specially allocate the amount being transferred from CA Form 4684, Page 2. This amount is included in the printed statement and in the total for California Schedule K, line 13e.Other deductions
UltraTax CS transfers relevant data from the federal K-2 screen to this statement. To exclude an item from the state return, delete the amount, enter
0
(zero), or delete the entire line item from the statement. UltraTax CS displays the modified column in black and won't overwrite the new data with subsequent federal-to-state data transfers. UltraTax CS adds the items entered in this statement to the following items in the printed statement:
- The amount from CA Form 4684, line 38
- Health insurance considered guaranteed payments to partners
- Educational assistance benefits
- Dependent care benefits
- Preproductive period expenses
- Commercial revitalization deduction from rental real estate activities
- Penalty of early withdrawal of savings
- Pensions and IRAs
- Other health insurance