I had California real property (1 parcel) that I exchanged into 3 real properties in Nevada in 2017. I've used TurboTax for the past couple years and have consistently had problems with this form e-filing. It is completed correctly but get error check messages that the property description must be completed on Schedule A Part II. The form's directions clearly state to leave blank for real property. If it's blank I have errors and can't complete the filing process. When I put a description in the field it rejects e-file. It's frustrating and have had this problem for the past 2 filing seasons. I used a professional software program in 2017, 2018 and 2019 without issue. I believe there is definitely a glitch in the software of TurboTax but doesn't seem to get fixed since it doesn't affect many filers. It is very frustrating to have to paper file after spending the money to efile. I'm going to paper file again but does anyone know how to fix this?
All taxpayers, regardless of residence status or commercial domicile, who exchange real property located in California for like-kind property located outside of California, must file form FTB 3840 with their California tax return. See here for California information on like-kind exchanges.
TurboTax will prepare the form and include it with the California return.
I have not found any current reported issues with this form. In order for us to troubleshoot the issue, you can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions for TurboTax Online users:
Go to the black panel on the left side of your program and select Tax Tools.
We will then be able to see exactly what you are seeing, and we can determine what is going on in your return and provide you with a resolution.
I'm using turbo tax premier desk top so are the directions for sending a file the same as online? I've gone ahead and paper filed the return but would like to be able to fix this so it won't happen in the future. I see that I can send a file to an agent - is that what I'd want to
Yes, you can use the directions for Send File to Agent.
I've sent the file to agent - Token #1117535
I had to put a bogus description in the property description field in order to pass first error check. The instructions clearly state to leave blank if real property for e-filing - Sch A - CA form 3840
Thank you. We will look at the file, and post in this thread with the results and any status updates on the issue.
I have reviewed the data file and encountered the Review errors you noted prompting for completion of missing entries on California Form 3840.
I reviewed the California FTB's instructions for completing the form and did not find any instruction specifying that the entries flagged for review should not be completed for real property.
Please let us know where you are finding the conflicting instructions.
Form FTB 3840 must be filed for the taxable year of the exchange and for each subsequent taxable year, generally, until the California source deferred gain or loss is recognized. Attach form FTB 3840 to the California tax return, or file separately as a California information return if the taxpayer does not otherwise have a California filing requirement.
If the taxpayer does not otherwise have a California filing requirement, file Form 3840 separately as a California information return.
Sign and mail form FTB 3840 to:
Franchise Tax Board
PO Box 1998
Rancho Cordova, CA 95741-1998
If you go to forms view for CA 3840, sch A - Part I properties given up, under property description it says personal property (leave blank for real property; this is an e-file requirement)
if I leave it blank it kicks out on error check. But with a value there it rejects for efile. I put NA to get it to the paper file point. As mentioned I have paper filed California but would like to efile in the future.
I used to use proSeries software and that was the product used when I originally did the exchange in 2017. It worked fine in that program for 2018 and 2019. Since I retired I didn’t wish to continue using the professional software as it was quite expensive and overkill for one return so I switched to TurboTax. This form has continued to be an issue since using TurboTax.
Thank you for the additional information. I am reporting the issue.
EXACT SAME PROBLEM ENCOUNTERED. HAS THIS BEEN FIXED? THE FORM CLEARLY SAYS TO LEAVE BLANK FOR REAL PROPERTY, BUT IT FLAGS AN ERROR IF LEFT BLANK. IF FILLED IN, IT REJECTS FOR E-FILE.
The problem is not yet fixed. I just reported it when I became aware of it on April 6th, which is very late in the tax season.
If your situation requires California Form 3840, then I recommend that you mail your California return, which is what the previous poster who reported it is doing. We acknowledge that this is only a temporary solution.
Turbo Tax, you are not listening to janmarshburn - read her comments again. We know we have to fill out the form 3840 for properties exchanged outside of CA, but Turbo Tax is making us fill in a line that says leave it blank for e-filing. Then CA rejects the form when e-filed because the line, which Turbo Tax required that we fill in, is filled in. When Turbo Tax is satisfied, CA rejects the e-filing!
Greetings, USDreadnought, (c'est moi!) is having the same problem as janmarshburn and IanSt reported with form 3840! We know we have to fill out the form 3840 for properties exchanged outside of CA, but Turbo Tax is making us fill in a line that says leave it blank for e-filing. Then CA rejects the form when e-filed because the line, which Turbo Tax required that we fill in, is filled in. When Turbo Tax is satisfied, CA rejects the e-filing! I paid extra for e-filing and I am not happy with Turbo Tax recommending that I paper file, due to a glitch in the Turbo Tax Program. My email is <[email address removed]> thank you.
I have the exact same problem, we did an exchange in 2018. Still unable to file electronically. Rejection after rejection. I agree, glitch in the system
I am experiencing the same issue with e-filing California. It was rejected with the error message prompting invalid or missing description of property given up in form 3840. I tried a few workarounds, including entering a blank space to pass the Turbo Tax review check but it still gets rejected during e-filing. Does anyone know if Turbo Tax is following up on this reported glitch? Do they have any plan to fix this conflicting issue that's been around for years? Since you can't e-file, will Turbo Tax give you partial refund for the state? Any insight is greatly appreciated. Thank you.
I have been dealing with this problem since first filing for tax year 2019 when I exchanged under 1031 a California rental property for multistate rental properties using DSTs( Delaware Statutory Trust) . I had talked to to those called Turbo Tax agents in 2020, 2021 and 2022 for help but to no avail. I finally brought this problem to the attention of a customer service rep of Turbo Tax last year to look into this apparent glitch software. and I was assured that it would be looked into. I have been filing the Form 3840 manually and it has been frustrating and hope this problem has been fixed as I just downloaded the Turbo Tax 2023 Premium.
kmbayarea, am I mistaken, or has Turbo Tax been ignoring the CA form 3840 issue for years? If I read your latest post correctly, you filed by paper in 2023 already, so the problem has not been fixed for 2023? Thank you, USDreadnought, Napa
I have not yet looked at the 2023 Turbo Tax Premier yet which I am in the process of downloading. Let's hope this software glitch has been fixed!
Thank you kmbayarea, I am probably going to switch to HR Block as I am ready now to start my taxes. Hope that Turbo Tax has fixed it this year, after years of problems, it not going to be enough for my money this year. Thanks for responding. USDreadnought
No they have not fixed this stupid error at all. It's still making you put in the non-existent property given up
My CA return has been rejected twice, all info correct.
Looking at ALL the comments appears that TurboTax has failed to correct YOUR issue.
The issue, see earlier in this thread, it that CA wants the property description blank, but turbotax will not allow it to be filed with property description blank. There have been numerous complaint on this issue, why is it not fixed?
And your "response" of Just file it as paper, and we will keep the E filing fee, is BULL**bleep**, as I will now have to print 100+ pages, spend the time to deal with it, and pay $$ to mail it.
I am also having this issue,
Sent in my tax file 1245274
Why has this not been fixed? If I have to print and mail, when will you be crediting back my E File fee?
Greetings jholliday88 and all. CA accepted my 2 forms 3840s this year on the second e-filing try. I think the secret was to correct the way the property address OR parcel number is input at the top of the form. Forget parcel number. Then, don't fight the form. Put the property address in, line by line, exactly as the form wants the info inserted. No more, no less, exactly as the form wants it. Nothing extra. The form then properly populates the remainder of the form. I had to correct the top section this way on both of my forms and then CA accepted my electronic returns! If at fist you don't succeed, correct the address format and try again! Best wishes, Frank from Napa
I am having the same problem - I cannot submit the form 3840 if I have a description (turbo tax makes me delete the personal property description) but it is then rejected by CA state tax....that says I must have a description! The problem is not fixed. But somehow I filed electronically last year! Same data. Not sure what has changed but I really do not want to print and send to CA state tax board.