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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 11378
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I have been informed I must file a FTB 2014 return. The form

Customer Question

I have been informed I must file a FTB 2014 return. The form requires a reconciiation between IRS and FTB for "Domestic Production Activities Deduction"
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: Was there a difference in allowable depletion between Calif and IRS in 2014?
JA: Is there anything else the Accountant should be aware of?
Customer: Don't this so.
Submitted: 3 months ago.
Category: Tax
Expert:  Lane replied 3 months ago.

Hi. My name's Lane. I can help here.

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If you'll look here, CA does NOT conform to federal law in the following areas (I'll underline the pertinent part)

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"California law does not conform to federal law for the following provisions:

  • IRC Section 139A - Exclusion from gross income of certain federal subsidies for prescription drug plans;
  • Expansion of the exclusion of survivor benefits attributable to service by a public safety officer who is killed in the line of duty before January 1, 1997;
  • Recovery period for depreciation of certain leasehold improvements and restaurant property;
  • Deduction relating to income attributable to domestic production activities;
  • 2 year extension of increased expensing for small business;
  • Modification of application of income forecast method of depreciation;
  • Special rules for certain film and television productions;
  • Modification of depreciation allowance for aircraft; and
  • Sales or dispositions to implement FERC or State electric restructuring policy."

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If you use one of the packages (e.g., Turbotax) this reconciliation is done automatically

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What software do you use?

Expert:  Lane replied 3 months ago.

Looked at the code. California simply doesn't allow the deduction.

Expert:  Lane replied 3 months ago.

You'll see this adjustment on line 35 of California Schedule CA: https://www.ftb.ca.gov/forms/2015/15_540ca.pdf "California Adjustments — Residents."

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Please let me know if you have ANY questions at all, before rating me

But if this has helped, and you don’t have other questions, I would appreciate a positive rating (using those stars on your screen – and clicking submit)

That’s the only way JustAnswer will compensate me for the work here.

Thanks,

Lane

I hold a law degree, with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986

Expert:  Lane replied 3 months ago.

Hi,

...

I’m just checking back in to see how things are going.

...

Did my answer help?

If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit")

...

But if you need more on this, please let me know.

Lane

Expert:  Lane replied 3 months ago.

Hi,

...

I’m just checking back in to see how things are going.

...

Did my answer help?

If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit")

...

But if you need more on this, please let me know.

Lane