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I have a s corporation California business with zero gross receipts and about $20K deductions, net loss $20K for year 2024 is generating Federal K-1 (Box 1 business loss), but not State CA K-1, page 2 with business loss. This entity is a nonpassive and shareholder has sufficiant basis to cover the loss. My understanding is that CA NOL suspension should apply on the shareholder's individual income tax level. Just to test the software, if I put a number 1 on gross receipts, schedule K-1 for California will be generated. Is this a software issue, or am I missing a new tax law change for California?
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Try entering negative one (-1) for gross receipts and let us know if that works. ProConnect does not recognize zero or a blank as 0. Negative one (-1) is essential for the program to recognize you really mean zero. That is throughout the whole program. You will see it in the (memo) are on some input.
Answers are easy. Questions are hard!
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Thank you for your prompt response.
I already tried entering -1 as gross receipts. That works to generate CA Schedule K-1. However, -1 shows gross receipts as -1 on Federal Form 1120S.
