FTB ANNUAL TAX

[Tiana]

My client meets Exceptions to the first year FTB annual tax. How to remove the default calculated by the system Lacerte. It's line 21 of 100S

[Karl · Accepted solution]

Screen 42.011 checkbox (code 16) "Initial return in California"

FYI to be clear, the exemption is only for the minimum $800 franchise tax.  There is still a franchise tax of 1.5%, so if your client was profitable in year 1, there will still be some franchise tax.