Eliminations client can't be in a California combined group
You may get a diagnostic that states an eliminations client with CA attached cannot be included in a CA combined group.
Per Title 18 Cal. Code Reg. Section 25106.5-1, income or losses from intercompany transactions are deferred rather than eliminated. To calculate the combined group return in accordance with Reg. Section 25106.5-1, the eliminations client cannot be used for California. Instead, enter adjustments related to intercompany transactions on the CACAdj screen or in Apportionment information:
- Go toViewand selectApportionment.
- On theCaliforniatab, enterIntercompany amounts.
For more information, refer to FTB Publication 1061, Guidelines for Corporations Filing a Combined Report.
