CA K1

[AGtaxman]

Why doesn't the difference between the Federal and CA gain on disposal of assets (not section 179 assets) get included in the income allocated to Line 1 of the K1?

[Just-Lisa-Now-]

The California K-1 doesn't show any adjustments?

Did you prepare the business return or just the 1040 with the K-1?

[AGtaxman]

Yes, I prepared the entity S corp return.  The K1 shows adjustments on line 1 from Federal to CA.  But it doesn't include the difference in the ordinary gain on disposal of assets.