Califorinia non-resident capital gains not handled correctly

Forum|Forum|5 years ago
April 18, 2021
8 replies
43 views

Capital Gains from a CA property sale provided income that needs to be listed in Column E of part II of the CA 540NR form as income "received from CA sources as a non-resident." But it is not reported there and I see nowhere in Turbo tax to make that designation. I need this to be done so that it properly reports the income as California income. How can I do get this to be recorded properly?

TomD8

Alumni - Champ

Your capital gain should appear on Line 7 of your California Schedule CA (540NR).

https://www.ftb.ca.gov/forms/2020/2020-540nr-ca.pdf

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

AndyK4Author

Level 2

The numbers appear properly on line 7 in columns A (Federal amt) and D (amt if I were a CA resident). The problem is that the value does not show up in column E. In my case, Column E should report the same value as "income earned or received from CA sources as a nonresident". Because it does not show up in that column, my taxes are calculated as if I have no CA income, and that is not correct.

TomD8

Alumni - Champ

Sometimes the column E amount requires adjustment. Does your CA return include CA Schedule D (540NR)?

See this:

"Full-year nonresidents or part-year residents complete Schedule D (540NR), California Capital Gain or Loss Adjustment, and the Schedule D (540NR) Worksheet for Nonresident and Part-Year Residents, in order to complete column E on Schedule CA (540NR)."

https://www.ftb.ca.gov/forms/2020/2020-540nr-d-instructions.html

**Answers are correct to the best of my ability but do not constitute tax or legal advice.