California Capital Gains are computed on Form 540 Schedule
D. The Federal Capital Gains are
computed on Schedule D. If you compare these two Schedules, you will see where
the data differs. Since your California
and Federal answers are different, a California Schedule D should be prepared.
If you have a net gain, it would be treated as a Capital
Gain; if you have a net loss, it would be treated as an ordinary loss. Ordinary losses would be reported on Form
4797 for Federal purposes. The
California equivalent to the Federal Form 4797 is the Schedule D-1, Sales of
Business Property. You may also need to
compare these schedules.
