ptax255
Level 7

Hi, the client has already done the federal and CA income tax returns reporting self-employment income. In schedule C there's depreciation expense and an amount for taxes and license. I am now preparing form 568 and proseries is automatically adding back depreciation expense and taxes and license. This makes net loss on 568 lower than the net loss on the CA tax return. Is this ok, or should the two match? Any FTB guidance is appreciated.

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abctax55
Level 15

Disclaimer, I'm a Lacertian...

1) CA depreciation *can* be different than Federal.

2) CA *income* taxes are not deductible for CA purposes.

Perhaps you have some coding errors?  NMI and need some PS folks to chime in.

 

HumanKind... Be Both
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