1040-CA: Aggregate Gross Receipts (Schedule P) calculation

Overview

Gross income from all business and nonbusiness sources is included in Aggregate Gross Receipts (AGR). The test is applied to income from all sources. For part-year and nonresident returns, the test is applied to income from total sources (not California sources only).

Calculation

The AGR is automatically calculated for every return and a Not Required statement will print listing the income sources. If the AGR calculates to less than $1,000,000, a second statement is printed listing the taxable income from trades or businesses that is eligible to be excluded from Schedule P, Page 1 income. For part-year and nonresident returns, a third statement is printed listing taxable trade or business income from only California sources that is eligible to be excluded from Schedule P, Page 2 income. All exclusion and preference items are automatically excluded from the calculation of Schedule P, Page 1 and Schedule P (540NR), Pages 1 and 2. The calculated AMTI exclusion is displayed on Schedule P, Page 1 and Schedule P (540NR), Pages 1 and 2.

To force the return to meet or fail the Aggregate Gross Receipts test, use the Meets aggregate gross receipts test (Force) field in Screen CAAMT. An entry in this field includes or excludes all adjustments, preferences, and AMTI excludable income on the return. The statement detail of the calculation no longer prints. Adjustments, preferences, and AMTI exclusions may be forced to be different from the calculated amounts on a field by field basis using the Force fields in Screen CAAMT.

Note: Schedule K-1: Enter the proportional share of pass-through income from partnerships or S Corporations in the Gross income from all sources field in federal Screen K1-4 or California Screen CAK1-4.