schwarcz
Returning Member

California capital gains: why the subtraction?

Turbo Tax 2020 takes all my cap gains from Federal Sched D and makes them a subtraction on the California Schedule CA.  As a result, by default, my CA return would pay no taxes on the capital gains.  This seems just wrong and a Turbo Tax bug.  My CPA says there is no reason that the Federal cap gains would not be taxable.

 

Turbo Tax, can you please explain the behavior?