Intangible Drilling costs - California Tax Return

To enter the correct amount of California IDC to deduct, open your California return:

1. Go to Income that California handles differently >> Partnership K-1.
2. Edit the K-1 that has IDC.
3. Enter the California IDC amount on Lines 13d and 17f. Note that this may not affect your California income. But your California K-1 will not report excess IDC.
4. Continue back to the California return summary page.
5. Click Edit/Start beside Credits and Taxes.
6. Scroll down to Taxes >> Alternative Minimum Tax (AMT) and click Start/Revisit.
7. Start AMT.
8. Continue to the page "AMT Adjustments and Preferences."
9. Enter the amount of IDC expense allowed by California in the box for Intangible Drilling Cost.
10. Continue back to the California return summary page.

Note that only the AMT portion will have an effect on your California taxable income (if applicable).