Use this field to adjust Total Sources of Gross income under California law.

Use this field to adjust Total Sources of Total expenses under California law.

Information appears in the shaded fields from data entered in federal Screen 4835 or in the asset module. Use the Force fields to force an amount different than the calculated amount appearing in the shaded default fields. The difference between the state amount and the federal amount is included in the California return as an adjustment to income.

For resident California returns, UltraTax CS defaults to disallow the amount of excess farm loss that was calculated on the federal return on the California resident return. Use this field to enter an amount if different from the calculated amount. For part-year and nonresident returns, the amount of loss disallowed for the instate income is calculated by multiplying the total disallowed excess farm loss by the instate ratio entered in the state allocation spreadsheet for this activity. When the allocation spreadsheet it not used, UltraTax CS defaults to 100 percent when the postal code in federal Screen 4835 is CA, and 0 (zero) percent when the postal code in federal Screen 4835 is not CA.

The passive activity code entered in federal Screen 4835-2 transfers to this field. Code 4 Real estate professional is not applicable to California and is not available in the fieldview attached to this field. UltraTax CS automatically changes a code 4 Real estate professional entered in federal Screen 4835-2 to code 2 Rental real estate w/active participation in this field. The code may be changed as needed to code 1 Other passive when the additional loss deduction for rental real estate activities is not applicable to the activity.

Items coded DEPR (Depreciation on property-post 1986) entered in the Preference Items statement dialog on federal Screen 4835-2 transfer to this statement dialog. This amount is used on Schedule P (540) or Schedule P (540NR). Use this statement dialog to change the post-1986 depreciation amount from this activity to include on Schedule P. Use Screens CAAMT and CAAMT-2 to force the overall post-1986 depreciation amount reported on Schedule P.

Schedule P also uses amounts entered in the Preference Items statement dialog on federal Screen 4835-2 with the following codes:

• CIRC (Circulation costs)
• CONT (Long-term contract)
• DEPL (Depletion adjustment)
• FARM (Tax shelter farm activities)
• MINE (Mining costs)
• PATR (Patron’s adjustment)
• RESX (Research and experimental costs)

The aforementioned amounts do not transfer to this statement dialog. Use Screens CAAMT and CAAMT-2 to force the overall amounts reported on Schedule P.

Amounts in the Preference Items statement dialog on federal Screen 4835-2 with the following codes are not used by the California return and do not transfer to this statement dialog:

• DP87 (Depreciation on property- pre 1987)
• PERS (Accel dep on personal property-pre 1987)
• REAL (Accel dep on real property-pre 1987)

When state-specific carryover information is available for proforma, the information is proforma’d to the corresponding federal input screen for the activity. Total Sources information is proforma’d to federal Screen St CO with postal code CA. California Sources carryover information is proforma’d to federal Screen St CO with postal code CS (California Source). The information is federal-to-state transferred to this screen. California Sources fields that are blank are assumed to be zero; the calculation does not default to Total Sources amounts.