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rvogel03
New Member

Non-resident of CA who sold a CA rental property at a loss during 2015, but turbo tax is calculating a substantial capital gain on CA tax income section. I can't find where to correct that.

 
7 Replies
Lisa995
Level 12

Non-resident of CA who sold a CA rental property at a loss during 2015, but turbo tax is calculating a substantial capital gain on CA tax income section. I can't find where to correct that.

With the recapture of depreciation on the rental, its very possible you do end up with a taxable gain (even if you made no profit on the sale).   Look at the Federal 1040, Line 14 or Form 4797, does it show a gain?
♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪
rvogel03
New Member

Non-resident of CA who sold a CA rental property at a loss during 2015, but turbo tax is calculating a substantial capital gain on CA tax income section. I can't find where to correct that.

It shows a loss of $24K.
rvogel03
New Member

Non-resident of CA who sold a CA rental property at a loss during 2015, but turbo tax is calculating a substantial capital gain on CA tax income section. I can't find where to correct that.

The capital gain is showing as $173K gain. It seems like there is some bad data being fed into the CA state form from the federal form somewhere, but not sure where to go to correct that.
Lisa995
Level 12

Non-resident of CA who sold a CA rental property at a loss during 2015, but turbo tax is calculating a substantial capital gain on CA tax income section. I can't find where to correct that.

So Line 13 of the 1040 shows a gain there as well?
♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪
rvogel03
New Member

Non-resident of CA who sold a CA rental property at a loss during 2015, but turbo tax is calculating a substantial capital gain on CA tax income section. I can't find where to correct that.

Line 13 of the 1040 doesn't show anything.
TerryA
Level 7

Non-resident of CA who sold a CA rental property at a loss during 2015, but turbo tax is calculating a substantial capital gain on CA tax income section. I can't find where to correct that.

Be sure to compare the rental's asset worksheets between federal and Calif. Does the Calif asset have the land portion on it? Look for differences in costs and prior depreciation.
JohnH2
New Member

Non-resident of CA who sold a CA rental property at a loss during 2015, but turbo tax is calculating a substantial capital gain on CA tax income section. I can't find where to correct that.

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.

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