Thanks ColeenD3. The issue is that I have a realized Capital Loss, not a Capital Gain. Since California treats HSAs as any old taxable investment account, I should be able to deduct the loss on my California return. However, it wont appear on my Federal return. I know some tax prep services can't handle this. I'm just trying to figure out if TurboTax can handle this scenario before committing to TurboTax.
