Why does Turbo Tax generate Schedule E on California return for non resident when the property is located Texas? Per my Tax professional the Schedule E is not required for non resident. How do I remove Schedule E form on California tax return?

That is correct. Nonresidents are taxed only on rental income from property located in California.  However, a copy of your federal return (including your federal Schedule E) is required for all 540NR returns. You should see the rental income being deducted on Schedule CA (540NR), Line 5. 

 

I know my Federal return included Sch E  is attached with CA return and the rental income is not taxed on CA return. Why did TurboTax make an adjustment for depreciation? My property was full depreciated for Federal return due to 100% bonus depreciation. Since the rental income is not taxed on CA return, the tax depreciation adjustment is not necessary on CA return.  

I would like to take a deeper look at your return. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

 

TurboTax Online:

1. Sign into your online account.
2. Locate the Tax Tools on the left-hand side of the screen.
3. A drop-down will appear. Select Tools
4. On the pop-up screen, click on “Share my file with agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
6. Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
3. This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.
4. Please provide the Token Number (including the dash) that was generated in the response.

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)

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