topic Re: California Schedule D in State tax filing

California Schedule D

SLYKTAX — Wed, 15 Mar 2023 02:03:39 GMT

What is California Schedule D? I imported my last year federal and has carry over populated but it asked me to look at my California Schedule D for carry over. I don't find I have a form on my California 540 last year. Does that mean I have none? Also shouldn't Turbo Tax know I have one or not when I have been using it to prepare my taxes for 25 years.

Re: California Schedule D

ThomasM125 — Wed, 15 Mar 2023 22:01:13 GMT

TurboTax should carry your losses over automatically, but sometimes the program will ask you to check on things like that for a variety of reasons.

California Schedule D is used to reconcile captital gains and losses reported on your federal tax return with those allowable in California. If you had more losses than were allowed, you would have a carryover to the next year. You would have a California Schedule D if you had capital losses in 2021, so if you don't have that form it may mean you don't have a loss carryover. I suggest you look on your federal Schedule D and see if there is a loss on line 21. If the amount on line 21 is a loss of $3,000, that means you are deducting the total capital loss alllowed for the year of $3,000, so you probably have a loss carryover that you weren't able to use in that year.

Re: California Schedule D

SLYKTAX — Thu, 16 Mar 2023 02:11:26 GMT

Thanks.

It is weird that at line 6 on my2021 D (540), it was blank. But on my California Capital Loss Carryover Work sheet , line 6 is 3960, line 7 is 3000 and line 8 is 960. Line 8 said "This is your capital loss carry to 2022. "

Should I entered 960 on 2022?

Re: California Schedule D

DaveF1006 — Thu, 16 Mar 2023 17:16:36 GMT

Check your 2022 Schedule D to see if $960 is recorded in Line 6 of your CA Schedule D. Your 2021 CA Schedule D line 6 should be blank if you didn't have carryover losses from 2020.

@SLYKTAX

Re: California Schedule D

SLYKTAX — Thu, 16 Mar 2023 18:49:25 GMT

It is blank on Line 6 on CA D(540) .

But on my California Capital Loss Carryover Work Sheet , Line 6 is 3960, line 7 is 3000 and line 8 is 960.

Line 8 said "This is your capital loss carry to 2022. " why was it not transfer to D(540)?

Re: California Schedule D

Cynthiad66 — Thu, 23 Mar 2023 18:59:13 GMT

California has an entry for Capitol loss carryover from 2021. See the example below from TurboTax online.

So enter your carryover here.

Once you start the state just answer all questions and this one will automatically pop up.

@SLYKTAX

Re: California Schedule D

Ldubs — Thu, 08 Feb 2024 18:28:26 GMT

The problem I encountered is TurboTax says I have to go to the California Franchise Tax Board site and download a PDF of the state's Sched D. Nothing else popped up and no other instructions are provided. When I purchase California State tax software, I would expect this to be included with needed guidance.

Re: California Schedule D

MonikaK1 — Thu, 15 Feb 2024 01:10:23 GMT

Please clarify. Where in the program are you being asked to obtain a copy of California Schedule D from the Franchise Tax Board?

If you are a first-time TurboTax user, and you have a capital loss carryover from your 2022 California return, the program will ask for the carryover amount from your own prior year return.

Re: California Schedule D

Ldubs — Thu, 15 Feb 2024 17:45:13 GMT

Sure. It referred to the California Sched D carryover worksheet, not California Sched D itself. Now I have to admit I have egg on my face. I realize now that I saw that instruction when I looked at my 2022 TT in an attempt to figure the 2023 carryover. I mistakenly said in my earlier post that it was from the 2023 TT instructions. Here is the instruction on the 2022 TT:

"The federal carryover about is not used for California because it’s often a different amount. If you need help figuring this out, use the worksheet at the end of the 2022 California Schedule D instructions: https//www.ftb.ca.gov/forms/2022/22_540d.pdf"

Back to my current issue, in the 2023 State return section about capital loss carryover, it says:

"You have a capital loss carryover of $xxxxx on your Federal return.

"Enter the California capital loss carryover amounts below"

It does not ask about the carryover amount from a prior year.

I am not a first time user and I am certainly not a tax professional. When I click on "Why would there be a difference between California and Federal capital losses" it opens a window that says "How do I know if I have a different capital loss carryover in California?". It explains there are a few differences and to see below for a "few examples". I now think I am misinterpreting "a few examples" to mean the list is not exhaustive. If it covers everything, then it might be better to say something like "if none of these apply use the Fed carryover amount". If they are exhaustive, then I am good to go. If not, then I have no idea what to enter.

Thank you for your patience and help.

Re: California Schedule D

MonikaK1 — Sun, 18 Feb 2024 18:43:49 GMT

If you reviewed the examples given of the California differences, those are the only ones TurboTax expects any users to encounter and, as you stated, you should be "good to go".

When California conforms to federal tax law changes, they do not always adopt all of the changes made at the federal level. For more information, go to ftb.ca.gov and search for conformity. This will bring up a list of every law where there is a difference.

Here are the actual instructions for the Carryover Worksheet from the FTB's instructions for California Schedule D for 2022:

California Capital Loss Carryover Worksheet

Loss from Schedule D (540), line 11, stated as a positive number.
Amount from Form 540, line 17.
Amount from Form 540, line 18.
Subtract line 3 from line 2. If less than zero, enter as a negative amount.
Combine line 1 and line 4. If less than zero, enter -0-
Loss from Schedule D (540), line 8 as a positive number.
Enter the smaller of line 1 or line 5.
Subtract line 7 from line 6. This is your capital loss carryover to 2023.

Re: California Schedule D

Ldubs — Sun, 18 Feb 2024 19:27:21 GMT

Thank you so much for confirming. I was clearly overthinking the item. If I'm not the only one stumbling in this area, TurboTax might consider different verbiage to make the intent clear.

Your patience, as well as that of your associates, is greatly appreciated.

Re: California Schedule D

MonikaK1 — Sun, 18 Feb 2024 22:48:14 GMT

You are welcome!