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Level 1
September 8, 2022
Question

CA 1065 K-1 Fed K-1 has 743(b) adjustment on 13e Other Deductions. CA portion of K-1 shows as CA Source deduction. Why doesn't this flow to CA return K-1 as deduction?

  • September 8, 2022
  • 1 reply
  • 13 views
There is Rental Income sourced in CA along with Section 743(b) deduction from this income.  On CA 540NR there is no line for this under 13 so not picking up this offset to the Rental Income.  How is this deduction entered for the 540NR?
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1 reply

Level 4
March 7, 2025

This was never answered, and I now have the same issue. In my case, the 743 amount is being treated as an "addition" on the Schedule CA. The 743(b) adjustment is treated properly on the federal return, albeit on a separate line from the partnership income in Part II of the Sch. E. Any guidance here? Thank you.