Hi @AmyC.
Did investigation ever lead to an answer? I have a very similar issue with 760PY tax calculation. I've spent over 30hrs on this problem alone and 6 hrs on the phone with TT support (no help!). I started with TurboTax online but purchased desktop to see what was happening on the forms (and override if needed).
For me, TT online pulls in 132k capital gain and 113k 'Fixed date conformity subtraction'. Both of these occurred while I was a resident of FL so I set to 0 when allocating income/paid for VA. After this change, the issue was obvious as my VA taxes owed were very high and did not line up with the small amount of income allocated to time in VA.
Looking at the printed VA returns... TT pulls the -113k gain adjustment into 760PY A1 (Fed) Line 8 'Net fixed date conformity modifications'. When the 760PY INC and 760PY calculations are complete this results in a 113k VA AGI and 110k taxable income (after prorated exemptions and standard deduction). That's obviously wrong. I did not earn 113k while in VA (I only earned about $54 in savings interest).
So where is this 113k coming from? Using TT Desktop and tracing the 113k backwards from source...
# 760PY INC (Schedule of Income)
Schedule A Column A1 Line 8 'Net fixed date conformity modifications' -113206
Income and Adjustments Allocation Smart Worksheet > Line 29 Fixed date conformity subtraction 113206
# Activity Worksheet (rental property address) L/T 4797-Fed/St Adjust
Part IV - Dispositions - Column Form 4797 Long-Term
10. Federal/State adjustment -110,668
...2a. Adjustments carried from the federal return -110,668
1. Federal income/loss 104,544
Part II - Regular Income/Loss
10. Federal/State adjustment -2,538
2b. Other depreciation adjustments -2,538
That's as far as the source links go. Focusing on the larger amount -110,668 I can see that it's also listed on another TT form 'Fed/State Adj' under Asset Dispositions.
The rental property is listed as...
A. Description of Asset Sold - Residential (date acq and sold)
B. If reported on 6252 or 8824 then check (both empty)
C. Federal Gain/Loss 87,206
D. Accumulated Depreciation (1) State: 19,078 (2) Federal 13,805
E. Gain Adjustment -88,998
F. Other Adjustment (blank)
G. Total Adjustment (D1-D2+E+F) -83,725
There is also another asset line for 'Roof' with Total Adjustment -5,943 (remaining depreciation for new roof installed?). And another unrelated line below Passive/At-Risk/Other Adjustment -21,000 (this is the land value). These 3 total to -110,668. Plus the 'other depreciation adjustment' of -2,538 equals -113,206 which is what's getting pulled into 760PY Inc as 'Fixed date conformity subtraction' and grossly misrepresenting income earned while in VA. Any help you can provide would be greatly appreciated.
