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Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.
Data entry
When entering Schedule C, Rent, Farm, 4835, and K-1 income, it is important to distinguish between Total Sources income under California law and California Sources income. Total sources
Total sources would be any income that would be taxable as if they are a California resident.
California sources are applicable to part-year or nonresidents only. This includes all income while a resident of California, and/or income from California sources as a nonresident.
For any activity that has postal code CA and is not using the multi-state allocation spreadsheet, 100 percent of federal amounts to both Total Sources and California Sources. Activities with any other postal code
Also see Screen CAC, CARent, CAF, or CA4835 for further information regarding allocation and apportionment percentages.
Form 540NR
Form 540NR calculates income on lines 12-19 and tax on line 31 as if the taxpayer was a full year, California resident. Income on these lines is always calculated at 100 percent of the federal, regardless of any allocations. Thus, tax on line 31 is based on income from all sources.
Form 540NR then uses Schedule CA (540NR) to calculate income from California sources. The return then calculates an instate ratio of California sourced income to Total source income to apply against the tax that was originally calculated as a full year resident. This will determine the tax liability on Form 540NR.
Schedule CA (540NR)
If Total Sources under California law does not equal 100 percent of federal amounts, the difference will result in an addition or subtraction on Schedule CA (540NR), columns B and C. Schedule CA (540R), column E will calculate in-state, California sourced income based on federal data entry, or amounts entered in the California Sources PY/NR Only columns of CA input screens. Review the California Schedule CA Reconciliation Report, titled Rec Bus and Rec K1 in forms view, for activity-by-activity calculations of total sources and California sources.
Review Schedule CA (540NR), Schedule CA (540NR) instructions and the Reconciliation worksheets, titled in forms view as Rec Bus and Rec K1, for more information on the calculations in determining total sources and California sources.
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