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Level 2
July 9, 2026
Question

How to remove Schedule D (540) Generated for California Non-Resident Return

  • July 9, 2026
  • 3 replies
  • 72 views

I am a full year non-resident, only income I have is rental in California. The form says ‘Do not complete this form if all of your California gains (losses) are the same as your Federal gains (losses). I followed the below instructions:

Mac instructions

  • Open or continue your return.
  • Switch to Forms Mode by selecting the Forms icon.
  • From the menu, select the form you want to remove (if you don't see it, select Open Form at the top).
  • From the Forms menu, select Remove Schedule D.
  • A popup window appears that says ‘Removing the form "Schedule D" will cause all of its data to be discarded. This operation cannot be reverted.’
  • I then click on “remove”
  • The form disappears for a second and then returns

Thank you in advance for the help!

    3 replies

    Alumni - Expert
    July 13, 2026

    Since Schedule D is still populating, I would recommend going through the California interview screens again as there is an entry in your return causing the form to populate.  If you only have rental property in California, then you should not have any capital gains allocated to California as a nonresident unless the capital gains are a result of transactions from property located within California.

     

    Be sure to review the residency dates as well as each screen where income is asked for.  When you reach the screen titled “Nonresident Adjustments”, review the entries on each of these screens to ensure only California sourced amounts are entered.  Some screens will indicate to enter zero if there is nothing allocable to California.

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    tungherAuthor
    Level 2
    July 14, 2026

    Thank you. Just to clarify, you don’t recommend manually changing the information on  the forms, but rather just answer the residency questions, correct?

    Alumni - Expert
    July 14, 2026

    Correct.  But make sure you verify the residency questions and confirm you have only entered California sourced income in the state interview questions.  If there is income listed on your federal return that is sourced to another state, then make sure those amounts are entered as a zero in the state interview screens while preparing your nonresident California return.

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