From TurboTax Help:
“The amounts shown on the screen transferred from your federal Investment Interest Expense Worksheet (Form 4952). They represent capital gain, including net capital gain from the disposition of property held for investment, that you elected to include in federal investment income.
If you want to change the amount of net capital gain for California investment income, simply enter that amount, keeping in mind that it cannot be more than the net gain amount shown.
Generally, investment income does not include net capital gain from the sale or exchange of property held for investment. However, you may elect to include all or part of these gains in investment income. You must make the election no later than the due date of your California return. Once made, the election may not be revoked without the consent of the Franchise Tax Board.”
Comments and questions:
I did not ‘elect to include’ anything in ‘federal investment income’. I entered details of a stock sale, and that was it. I had no choice in the matter.
How do I determine the proper amount (if any) to include in California investment income?
What criteria should be used in making this determination?
