To eliminate intangible drilling costs reported on Schedule K-1, you will need to manually adjust Line 13d under the California K-1 adjustments topic. Find this from the page "Here's the income that California handles differently" under Business >> Partnership K-1.
The Federal column displays the full amount you deducted on your federal return. Enter zero in the California column for Line 13d and on Line 17f.
If IDC is reported to you in the future, you will need to make this adjustment each year.
[edited 4/15/25 | 12:46 pm PDT]
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