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K-1 from 100S, passive. No federal deduction on 12c. California Line 12c lists an amount of 59e Research & Experimental expense. This amount is not being deducted on Schedule CA against the passive income from this S Corp. I don't know why.
Ca does not conform so it isn't required to be amortized.
There is a research credit Line 13m which might be interfering or coordinating in some way.
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There is no basis limitation. So that is not preventing the 59(e) deduction
Aside, maybe interesting: What is the reason this is not a Box 12J item on the K-1?
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These costs are deductible. The LC guidance says, "If these expenses are deducted in full in the current year...". Has the S Corporation already deducted them and are presenting them separately on Line 12 in case the TP chooses to amortize them?
Note: LC support told me that I need to contact the IRS. I'm mad about that.
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Answer: Nonpassive activities allow this deduction.
Question: Should the nondeductible amount be carried forward? It is not appearing the carryforwards list.
