Hey folks, there are (at least) two important errors in the California return which you are not catching, as mine thinks it is ready to file.
First, I left in enough $$ last year to be penalty-proof, and TT knows this when it comes to computing the tax due for 2023 (I'm being given credit for it). However, I found that I was being charged an underpayment penalty. When I traced it through the lines on the forms, I would up back at the California Carryover Worksheet. Line 2 was blank rather than the amount that I left in last year (as opposed to refunded). When I filled it in the penalty disappeared, but many people may not catch that and wind up paying penalties that are unjustified in whole or part.
Second, I have a depreciable asset related to a rental real estate property. At the end of 2022, for California purposes accumulated depreciation was $7,350 of the $7,920 cost. The $570 balance should depreciate this year. Instead, TurboTax has "forgotten" that there was prior depreciation and is saying that the entire amount of $7,920 should be depreciated this year (presumably as it's the last year that depreciation should occur.) This error is causing my income on the property to be low and taxes underpaid.
So overall it looks as if your California carryforwards from the 2022 to 2023 returns did not work well this year. I've fixed the first issue; how do I fix the depreciation one?
Thank you.
Brent
