Asked by J

Canute received a distribution from his traditional IRA. He made contributions to his traditional IRA before 1987 and his California basis is different from the federal basis. How is the adjustment reported on his California return?

The adjustment is made on:
Form 540, line 16.
Form 540 2EZ, line 12.
Schedule CA (540), Part I, Section A, line 4(b), column B.
Schedule CA (540), Part I, Section C, line 20, column C.

All Answers 1

Answered by GPT-5 mini AI
Schedule CA (540), Part I, Section A, line 4(b), column B.

This is reported as an adjustment (subtraction) to the federal taxable IRA distribution amount to reflect California's different pre‑1987 basis rules.