where is the california capital loss carryover on my 2023 return?

[srblue]

2024 Turbo Tax California return is asking me for my California capital loss carryover from my 2023. Where is it on my 2023 Callifornia return?

[MonikaK1]

It depends. If your California capital losses were the same as your Federal capital losses, your California return may not contain a California Schedule D, and the carryover amount to 2024 would be the same as on your Federal return. If your 2024 California return includes a Schedule D, check for an entry in Line 6 for "California capital loss carryover from 2022, if any". 

If you prepared your 2023 return in TurboTax, and there was a Schedule D for California, the amount to be carried over to 2024 can also be calculated in a "worksheet" in the Instructions for California Schedule D. Near the end of the instructions is the "worksheet" for capital loss carryovers (the worksheet is the same for 2024):

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 2024.

California also allows capital loss carryovers. However, 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.

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.

[hptao]

Are you saying that we have to go outside of TurboTax to manually calculate the CA Capital Loss Carryover, and then input that calculated value into TurboTax?

[PatriciaV]

Yes, you may need to calculate any adjustment for the amount transferred to your California return from your federal return. 

As MonikaK1 previously explained, this is based on California Schedule D from your prior year return using the worksheet in the Instructions for California Schedule D. Then enter the adjustment (if any) on the page for income treated differently under Investments >> Capital Loss Carryover From Last Year.

@hptao 

[cgdelaney18]

The answer doesn't seem to make sense.  Why would I need to through the exericise of creating a California Carryover Worksheet for Year 2024 when Turbo Tax already provides a Calif. Carryover Worksheet when it did my Year 2023 taxes?  Futhermore, why is Tourbo Tax for 2024 asking me to fill in the amount of carryover when it can find that amount of prior year worksheet?

[Daisy3363]

My client's 2024 California 540 Adjustments is not entering any amount for the 2023 Carryover Loss on Line 6 of Capital Gain or Loss Adjustment.  The 2023 amount was over $100,000 carryover loss.  The same question was asked on Reddit.  The poster quoted Turbo Tax advisor confirming that the 'error' is being actively worked on which was 2 days ago, April 3, 2025.  Has Turbo Tax confirmed in this community that there is an error?

[MNYL]

Hi All,

Same question here, CA Form 540 Schedule D, Line 6 is blank on Turbo Tax, it didn't transfer from last year. Some post mentioned to use the 2023 CA Capital Gain or Loss Adjustment in Schedule D's line #8 and minus $3000, which ended up is the same number as the capital loss of federal return.   

Please kindly advise as I need to turn in my tax return on tomorrow 4/14.  Many thanks!

[MonikaK1]

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