CA 540 incorrectly shows 0 cost basis for RSU sale

[primus1981]

I received some RSUs from my employer.  I received a 1099-B, along with a stock plan transactions supplement that shows the correct adjusted cost basis (as opposed  to the 1099-B which has $0 cost basis).  I believe I entered these correctly, as the federal capital gains/losses are exactly what I expect.  The federal 8949 reflects the correct capital gains/losses.

However, I noticed a significant difference when comparing my forms to those generated by Credit Karma.  The difference is in my CA taxable income.  I noticed that with TurboTax, my CA Schedule D (540) is still showing a cost basis of $0 for the RSU sales.  This results in an inflated capital gains income adjustment, and a large adjustment to my CA taxable income.  My understanding is that the CA Schedule D should still reflect the non-zero cost basis.

When I initially entered the 1099-B details, I mistakenly entered the cost basis as $0.  I later revisited that topic and entered the correct amounts.  Is it possible that the state forms are now messed up because of this?

[primus1981 · Accepted solution]

A TurboTax CPA rep was able to help me resolve this.  It turns out that initially entering a cost basis of $0 was the problem.  This generated a CA Schedule D (540) that should only be filled out when the state capital gains/losses are different than the federal.  After I entered the correct cost basis, the D (540) was not automatically removed.  Manually deleting the form fixed the issue.

[Franck Dernoncourt]

Same issue here. Thanks for sharing the fix. How did you manually the CA Schedule D (540)?

[primus1981]

I don't recall the specifics, but there was a link to view the individual forms and from there you can delete one.

This link might be helpful.

https://ttlc.intuit.com/community/accessing/help/how-do-i-view-and-delete-forms-in-turbotax-online/0...

[Franck Dernoncourt]

Thanks very much, the link indeed helped me remove the form.  I took a few screenshots of the deletion process and uploaded them on https://money.stackexchange.com/a/127458/5656 if anyone else has the same question. Hopefully TurboTax will one day solve this issue... I wonder how many people get screwed by this every year.