CA LLC as a disregarded entity

[dsi]

I have a CA LLC client that is a disregarded entity, and will be completeing a schedule E for federal purposes on this client's 1040. I completed the CA form 568 reporting the LLC rental activity, but was confused about having to also report it on my client's CA 540 return? Any help?

[Y2KEA]

I file the 568, attach a copy of the schedule E & pay the $800 franchise fee. The income is then reported on the 1040 which flows to the 540 where any income or loss is ulimatley shown.

[dsi]

Thanks, Y2KEA. After much research I found my answers. CA only wants pages 1,2,4 and the llc worksheet that is part of the 568.

[dsi]

One more question:

Do I need to make any kind of adjustment on the 540 for the $800 franchise tax fee that is associated with form 568? Or do I allow it as a deduction on the 540?

[Y2KEA]

Since you can't deduct any kind of CA state tax on a CA return, I put it on the sch E for federal & add it back on line 17 of the CA(540).