To enter the correct amount of California IDC to deduct, open your California return:
- Go to Income that California handles differently >> Partnership K-1.
- Edit the K-1 that has IDC.
- Enter the California IDC amount on Lines 13d and 17f. Note that this may not affect your California income. But your California K-1 will not report excess IDC.
- Continue back to the California return summary page.
- Click Edit/Start beside Credits and Taxes.
- Scroll down to Taxes >> Alternative Minimum Tax (AMT) and click Start/Revisit.
- Start AMT.
- Continue to the page "AMT Adjustments and Preferences."
- Enter the amount of IDC expense allowed by California in the box for Intangible Drilling Cost.
- Continue back to the California return summary page.
Note that only the AMT portion will have an effect on your California taxable income (if applicable).
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