Question

How does a self-employed person deduct entertainment expenses (no longer allowed on fed return). They are still 50% deductible on a CA return. Where do I enter them?

This is an area of nonconformity between US and CA tax law, but there doesn't seem to be a place to enter it on my state taxes. Thanks.

You would enter these in the Federal Tax section. The expenses aren't deductible on that return but will be transferred to your California return.

Here's how to enter the information:

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cms5Author

Thank you for this quick response! Prior to that, I found a way to enter it on the State side of things:

Go to Prepare State, Edit, click on Go Over California Again

Click through to Here's the Income That California Handles Differently

Edit the Business Profit or Loss Adjustment

Edit my business, click through to Other Adjustment,

Then add the name of the deduction and the amount as a negative number.

This method bypasses the Federal end of things, but it seemed to work just fine.

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