Form Ca 541 Line 14a and 14b on the k-1

[delmarflwr2]

I have spent almost two hours with tech support asking how to handle the Line 14a and 14b on proseries basic for this form. K-1

They now tell me to post for some help on the community, Please someone help me

No problem with Federal but the state. There is no place to enter 14a and b 

14a is tax exempt interest of 1099 column be- column c say -1099.

14b. Net investment income of col.b states 1954 column c states 1354 - column d 3308 and also col. e

is 3308.  The 541 does not have line 14 and need help where to enter this information. Having a hard time with this. Please advise - even to email [email address removed]

[joshuabarksatlcs]

would be helpful - 1065, 1120 or 1041 K-1?

[joshuabarksatlcs]

Sorry 541 K-1.  Ca

[joshuabarksatlcs]

1.  14a is tax exempt interest of 1099 column be- column c say -1099.

2.  14b. Net investment income of col.b states 1954 column c states 1354 - column d 3308 and also col. e is 3308. 

3.  The 541 does not have line 14 and need help where to enter this information. Having a hard time with this. Please advise - even to email [email address removed]

You also said: "No problem with Federal but the state. There is no place to enter 14a and b" 

I use Lacerte, but I'll try to help. 

Where do you enter the federal tax exempt interest on Column (b) of Line 14(a)?  Wherever you enter the federal amount, enter zero for the state amount  (in lacerte we enter a -1) . 

If I understand your post correctly, Col (c) probably is blank because col (b) adjusted out all of Col (a) .  So, I would guess the K-1 tells me the federal tax exempt income was NOT tax exempt for CA.

Practically, Line 14b Net invest income is the sum of all the investment income items on the K-1 that you enter somewhere else.  The Line 14b amounts go nowhere.  Whatever spots on your 1040 require the total investment income for the computation, it would just sum up the info from all other investment fields.  That's why it's not necessary to input the amount.  The line is more for memo use.   

For 14b Your info tells me the total federal investment income is 1954, California source adds another 1354 to arrive at 3,380 CA state income, and the amount all of CA source.  Again, this line should reflect the sum of other fields. If you want to, add up the other income - the federal  and CA amounts.  You should arrive at the totals that are reflected on this line.

Hope this helps.

[delmarflwr2]

Federal K-1 line 14a is tax exempt income. So I guess it is not necessary to put on Ca 541 since there is no place to put in on 541.

Do you think that is right

[joshuabarksatlcs]

In certain situations, tax exempt income would come to play.  Brain a bit fried and Bourbon running a bit too strong to give you an example.  Practically you're right.  Federal exempt income has amount but NOT state.  One possibility is that in some fields, the state taxable income is higher than federal.  That other field (fields) would take care of the adjustment. 

[delmarflwr2]

Maybe not explaining myself correctly. Federal K -1 under 14 with a code of a tax exempt states 1099

On the Ca 541 there is not line for 14a but states in col b 1099 then in col. b state a (1099) Copy of my k-1 541

The same goes for 1041 Federal under 14 e Net investment of 1954.

Go to Ca 541 there is not line for 14 e but on 541 k-1 it is under 14b for net investment of col a 1954.col b

says 1354 - column c 3308 and d the same which is the total of a and b under net investment income

[joshuabarksatlcs]

You explained yourself very clearly in your first post.  Read my original answer.  If you don't understand it, I can't help any further. 

You need to have a good understanding of K-1's, CA adjustments, CA source etc.  This is not the place to address the understanding for those.

Good luck.

[delmarflwr2]

I do not enter the state on the line for it only gives the Federal line to input that is why I was asking where

you enter it on the Ca 541,