Sam3410
Returning Member

CA Form 3840 for California Like Kind Exchange

I am using Turbo Tax Premier 2019 desktop version.

I have exchanged one property in CA to 2  property outside CA.

When I enter in  form 3840, Part1 the description of one of property given up, Turbo Tax  automatically populates in  Sch A/ Part1 (Property Given up) section to ask two property information ( A and B). I filled up A as I had only one property in CA given up. While doing the error check, it gives error message that box B ( Sch A, Part 1) must be filled. I am not sure if I have sold only one property, why Turbo tax is forcing me to fill information about two property given up.

I tried both way to automatically populate and manually enter 3840  sch A section and in both cases I get same error.

State tax filing

I am having the same issue filling out the annual California form 3840 for year 2020. I sold one rental property in California and purchased 5 real properties in other states in 2019. I am getting an error message when I list the the sold rental property (100%) in part 1 of the form 3840 and the form will not let me enter the multiple replacement properties with allocated % individual tax basis.

jkarolyi
Returning Member

State tax filing

Did anyone find a solution to this?  I sold one California property and acquired two out of state.


I tried breaking the single property given up into two using the same street adress.  I proportionately divided the selling price and basis proportionally per the purchase price percentage of the two replacement properties (which is almost dead on 60% and 40%).  TurboTax accepts this version and does not flag the error, but I wonder if the FTB will accept this.  It's a very weird way to report it.

 

I could not find a way to override it either.

State tax filing

I am having the same issue.  We only exchanged 1 property in CA, but the system keeps asking to poplulate property B.  So frustrating.  I'm going to have to send in that form by mail, instead of electronically with the rest of it.

I can't believe that they haven't fixed that error; it seems that it's been going on for a while.

State tax filing

I am having the same issue this year as well. It looks like there is still the same problem in populating the multiple properties received on form 3840 for one property given up.  Last year I deleted the form from California state tax forms and filed it manually using the California Franchise Tax Board website. 

State tax filing

Sounds like we're having the same issue again! I spent so much time trying to figure this out but to no avail. I called Turbo support as well and they were not able to help either. 

State tax filing

there is definitely an error in TT when filing CA 3840.  Me eFile got bounced back stating I didn't check the boxes whether the property was in CA or not.  But I did.  Similarly to you in the property given up ( one property) it flags a warning (red Exclamation point) if I don't check yes or no in properties number 2 or 3, but I only gave up one property.  And now CA rejects my efile and TT won't refund my 25 dollar fee even though it is there fault!  How's that ????

 

Also, TT didn't handle IRA rollovers which occurred after too much RMD's were taken out for 2021 and had to be rolled back into the IRA they came from.

 

State tax filing

It's a bummer.   I hope they fix this apparent bug. I was thinking to file like you did but then  ended up printing and mailing the returns and attaching the completed form 3840 for 2021 which I obtained from California FTB. Last year, I E-filed without  and the form 3840 and mail it separately. You might want to delete the  form 3840 and try to E-file again since you already paid the $25 filing fee and the send the completed 3840 separately to FTB. Good luck.