California law does not allow the IRC Section 263(c) deduction for intangible drilling and development costs in the case of oil and gas wells paid or incurred on or after January 1, 2024. However, the Turbo tax online software is not making this adjustment for California tax return. I already filed 2024 tax returns and realized that if I do not pay additional tax amount to California by 04/15/2024 due to above adjustment, I will have pay penalty and interest on the in addition to the additional tax due. I tried amending 2024 tax return for California only in Turbo tax online software, but I do not know what K-1 schedule items I need to modify. To my understanding, there are two important items in schedule K-1, Business loss and intangible drilling and development costs. I will very much appreciate any help to address this problem.
