Investors & landlords

Your California capital loss carryover could be the same as the Federal, or it could be different. California law differs from Federal law in some areas that affect the calculation of capital gains and losses, particularly depreciation. Also, unlike the federal government, California makes no distinction between short-term and long-term capital gains. It taxes all capital gains as income, using the same rates and brackets as the regular state income tax.

See the Instructions for California Schedule D for more information. Near the end of the instructions is the "worksheet" for capital loss carryovers:

California Capital Loss Carryover Worksheet

1. Enter loss from Schedule D (540), line 11, as a positive number.
2. Enter amount from Form 540, line 17.
3. Enter amount from Form 540, line 18.
4. Subtract line 3 from line 2. If less than zero, enter as a negative number.
5. Combine line 1 and line 4. If less than zero, enter -0-
6. Enter loss from Schedule D (540), line 8, as a positive number.
7. Enter the smaller of line 1 or line 5.
8. Subtract line 7 from line 6. This is your capital loss carryover to 2025.

When you prepare the California return in TurboTax, at the screen "Here's the income that California treats differently", under Investments, you can click on the item "Capital Loss Carryover from Last Year" and make any needed adjustments. See screenshot below:

@MNYL