California Business Loss

[Sue4259]

I have entered a business loss on my Federal Tax return, but on the California form, it appears to add it back to my income.  Am I missing a step?  It was not handled this way on the 2018 return.

[MarilynG1]

California starts with your Adjusted Gross Income from your Federal Return, so your Business Loss would be included in that number, but the addition back to CA income could be related to depreciation where CA differs from Federal. 

The best way to check is to compare last year's CA return with this year's to look for differences.

Adjustments to federal business income or loss you reported in column A may be necessary because of the difference between California and federal law relating to depreciation methods, special credits, and accelerated write-offs.

As a result, the recovery period or basis used to figure California depreciation may be different from the amount used for federal purposes.

Click this link for more info from the California FTB. 

[Sue4259]

Thank you Marilyn for your quick response.  It was very helpful and easy to understand.  I appreciate your taking the time to answer my question.

[medenholm]

Did you resolve this issue?  I am having the same problem.  My Federal AGI that was imported to my California return did not include business losses.  Regardless of the depreciation schedule, I cannot find anywhere that turbotax is added my k-1 losses into the california return