topic California LLC Tax in Deductions & credits

California LLC Tax

awmckenzie — Wed, 24 Feb 2021 00:14:04 GMT

Where is the $800 California LLC Tax put in the deductions list? Is it included in the 'Common Business Expenses' or separately under 'Taxes and Licenses'? If its separated out under 'Taxes and Licenses', the California Net Income does not calculate correctly.

Re: California LLC Tax

MinhT1 — Wed, 24 Feb 2021 16:25:05 GMT

The franchise tax of $800 is categorized under Taxes and Licenses.

This tax is deductible at the Federal level and not deductible at the CA state level.

Re: California LLC Tax

awmckenzie — Fri, 26 Feb 2021 18:04:07 GMT

Thanks. I had that, but if I don't include the $800 in the General Expenses and put it in under Taxes and Licenses, the State tax calculation of Net Income deducts the $800 from the General Expenses amount and comes up with an incorrect CA State Net Income. As an example - If there is $0 income and General expenses are $1000 and CA Tax is $800. The Federal Net Income loss of -$1,800. In TB, in calculation CA Net Income based on putting he $800 CA LLC Tax under Taxes and Licenses and the $1,000 General Expenses, TB calculates the CA Net Income Loss at -$200 and not and Net Income loss of -$1,000 as it should be for CA. Perhaps the $800 is should be included in both the General Expenses and shown in the Taxes and Licenses. Hope that helps clarify the problem.