Colorado State K-1 Tax Addback

[jamie-m-todd]

@DianeW777 

@AliciaP1 

@RobertB4444 

Hello,

I'm hoping you can assist me with a Colorado state addback entry that is tied to my K-1.  It is within the Colorado state return, under the Business section, and under the Schedule K-1 State Income Tax Addback line item.  This is the first year we had to complete a Schedule K-1, and are unsure if we need to populate a value for this Colorado return line item. 

Here are some details that will hopefully prove helpful in making that determination:

1. The K-1 is tied to a partnership LLC established in Colorado with several partners to build and sell a home in Colorado.  Let's assume $100k as our personal capital gain from the sale of the property in 2023.
2. My wife and I file jointly and are non-residents of Colorado, in which we live in California.
3. As in recent years, Turbo Tax limits us to the $10,000 standard deduction maximum despite us having a greater value aggregated across state and local taxes paid for income, real estate, and personal property.  From what I read online, the addback condition is treated differently if you take the standard deduction versus the itemized deduction.
4. Within the Colorado return, under "Colorado Portion of Gains and Losses", I entered the $100k value representing our gains we realized from selling the Colorado home as non-residents of Colorado.
5. After entering all K-1 data and essentially completing the Federal and respective CA and CO state portions of our return, the Colorado Individual Form 104 is showing a $0 value for the "State and local Income taxes or general sales taxes claimed on federal form 1040, Schedule A" line item within the "Additions to Federal Taxable Income section".  Does that signify that no Colorado State K-1 Tax Addback needs to occur?

Any direction on this will be so greatly appreciated!

Thanks,

Jamie

[RobertB4444]

You have no deductions from your income for Colorado so you have no addbacks for Colorado.  You're good.

@jamie-m-todd