CCH Axcess Tax

California Special Allocations for Activities and Depletion

For special allocation of items on Trade or business income, rent/royalty, farm income, fiduciary passthrough or partnership passthrough worksheets, and Additional Activity Information worksheet when activity numbers are used, only the special allocation codes listed below may be used. To specially allocate amounts when activity numbers are not used on these forms, refer to the section for "California Special Allocations for Non-Activities".

Activity allocation amounts default to the federal allocation method unless a unique state activity allocation code is used for the item. If federal and state activity amounts differ and the activity amount is specially allocated by a method other than percents or units (such as amounts or residual), California special allocation codes must be used.

The Schedule of Activities is not processed for California unless requested on the Options section of California General worksheet.

Different state amounts pertaining to the above activity amounts are calculated for the following situations:

Depreciation and Amortization (Form 4562) worksheet attached to either Trade or Business Income, Rent/Royalty, or Farm Income worksheet (activity number entered).
Gains and Losses worksheet using FS entries attached to Rent/Royalty or Farm worksheet (activity number entered).
Additional Activity Information worksheet using FS entries (activity number entered). Refer to federal instructions for Additional Activity Information worksheet.
California Section 179 expense calculated from state columns of Depreciation and Amortization (Form 4562) worksheet (activity number entered on Trade or Business, Rent/Royalty or Farm worksheet)
state columns of Passthrough Items worksheet. (activity number entered)

Special Allocations for Activities

7727	Ordinary income (loss)
7729	Rental real estate income (loss)
7730	Depreciation included in rental real estate
7731	Other rental income (loss)
7732	Depreciation included in other rental activities
7753	Interest income (2)
7795	US bond interest (2)
7755	Dividend income (2)
7733	Royalties (1)
7757	Net short term capital gain (loss) (2)
7759	Net long term capital gain (loss) (2)
7761	Other portfolio income (loss) (2)
7743	Sec. 1231 Trade or business
7745	Sec. 1231 Rental real estate (3)
7747	Sec. 1231 Other rental (3)
7735	Other income (1)
7763	Charitable contributions (2)
7751	Sec. 179 expense deduction
7765	Ded. related to portfolio income (2)
7767	Other deductions (2)
7771	Interest expense on investment debts (2)
7773	Investment income adjustment (2)
7775	Investment expense adjustment (2)
7741	Depr. adjustment post 1986
7779	Adjusted gain or loss
7777	Depletion (non-oil/gas) (2)
7781	Gross income from oil and gas (2)
7783	Deductions from oil and gas (2)
7794	Adjusted current earnings (2)
7737	Tax pref. accel. depr. real property
7739	Tax pref. accel. depr. pers. property
7785	Other tax preference (2)
7787	Section 59(e) expenditures (2)
7789	Tax-exempt interest income (2)
7791	Other tax-exempt income (2)
7793	Nondeductible expenses (2)
7769	Tentative depletion (2)

Note: (1) Applies to special allocation for amounts from Passthrough Items, Rent, Gains and Losses, and Additional Activity Information worksheets (with activity numbers). (2) Applies to special allocation for amounts on Passthrough Items, and Additional Activity Information worksheets (with activity numbers). (3) Applies to special allocation for amounts from Rent, Farm, Gains and Losses worksheets (with activity numbers. All other special allocation rows may be used with Rent, Farm, Gains and Losses and Additional Activity Information worksheets (with activity numbers).

Oil and Gas Properties

For California, mineral interest items of income and expense are allocated in the same manner as on the federal return. It is not required to enter the equivalent allocation codes for mineral interest items on Special Allocations worksheet unless a different allocation is desired than on the federal return. Refer to the federal section for oil and gas allocation for additional information.

55649	Gross income
55651	Royalty paid
55677	Percentage depletion
55653	Severance tax
55667	Dry hole costs
55665	Intangible drilling costs
55655	Depreciation
55657	Section 179 expense
55659	Amortization
55663	Overhead expense
55661	Operating expense
55673	Adjusted basis
55669	Beginning reserves
55671	Production (units)
55675	Cost depletion
55679	Excess IDC preference

California Special Allocations for Activities and Depletion

**Special Allocations for Activities**

Oil and Gas Properties

Special Allocations for Activities