This partnership has some nonresident members, which are not taxed by California for the partnerships interest income. How is this recorded on the CAK1?

Forum|Forum|4 years ago
March 24, 2022
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Lacerte Tax

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joshuabarksatlcs

Level 9

You have to identify CA source income.

NR has to pay CA tax on CA source income.

In case a NR partner does not have a share of the CA source income (e.g. the income ended when the partner joined) you need to do special allocations.

If it's done properly, the CA source income column (e) would have CA source income numbers for the NR. that column is blank for CA resident partners.

Hope this helps.

I come here for kudos and IRonMaN's jokes.

joshuabarksatlcs

Level 9

Was under the influence of bourbon earlier.

"Interest income" registered differently - as in "the partner's share of income from his partner interest."

Anyway, interest income generated from loans secured by CA real estate is CA source. You probably knew that.

For interest (or other income not subject to CA tax), go to Screen 43, Other Form, CA Sch K-1 Col (e) (4th item for CA in the top window on the left "St. Other Forms".

Highlight the partner under second window on the left "Partner" . For each type of income, enter the partner's share. enter -1 for zero.

(In Lacerte)

I come here for kudos and IRonMaN's jokes.

joshuabarksatlcs

Level 9

Thought I should mention this. In Lacerte, if you want to do some magic to a number on the tax return, point the arrow to the number (in the Form mode) with your mouse, right click. For many fields, it gives you the option to jump to the input.

In this case, if your arrow is on the partner's col (e) number, it will take you to the input screen. Change to the CA amount. or -1 for zero.

I come here for kudos and IRonMaN's jokes.

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