California Capital Loss Carryover from federal

[martymcflyfan]

Hi all, I'm using Turbo Tax and I have my federal done, now I'm doing my California state taxes. I have a federal capital loss carryover from 2023, and I have one this year as well (both 2023 and 2024 are carrying over to next year). In state, it keeps telling me to put down the carryover amount and that it can be different. It keeps referring me to my 2023 California 540 Schedule D worksheet, but the problem is here is no Schedule D on my 540 from last year. I've looked at the last 4 returns  and none of my state taxes have a 540 schedule d, but they all have a capital loss carryover. Why is this? 

Can I just leave the California carryover blank as at this point I don't care if I get a bigger refund, I've been trying to figure this out for over 5 hours. I used a different tax program the last few years, but I have those returns and don't see that form. Any advice.

[MaryK4]

Unfortunately, you cannot just leave the carryover blank- California uses the federal AGI and uses adjustments to determine the California taxable income.  Now it shows the allowed loss from the federal and you need the California carryover to make sure you do not have to adjust that amount.  But- you can look at your 2023 CA SCH CA Line 7- if it is -3000, you did not have adjustments.  The screen shot below shows the California Carryover Worksheet referenced- you can plug in the numbers from your 2023 return so you have the correct entry.  Please follow-up if necessary,

[martymcflyfan]

Hi, thanks for your response. The issue I'm having is that I'm looking at my 2023 California return and I don't see any carryover for that year even though I have it on the federal 1040. There is no California schedule D or worksheet attached to my 2023 CA return (but there is a schedule D on my 2023 1040). Is this normal? I know I had a $3k carryover every year the last few years but I don't see any mention of it on any of my previous CA returns from the last few years (but they are listed on the federal returns).

There is also no Schedule on my CA return from 2023, the only forms there are 540, wage and tax statement, form 3805P. Even looking over the 2023 CA 540 over each line, I don't see that the carryover from my 2023 federal is on the 540 2023 CA return. 

[martymcflyfan]

Hi, I wrote a previous reply. I was looking at my previous California Tax returns, and none of them have the 540 Schedule D nor do any of them mention any of my federal carryovers. I just pulled up a sample 540 schedule D to see what it looks  like and at the very top it says "Do not complete this schedule if all of your California gains (losses) are the same as your federal gains (losses). "

Could this explain why I don't have the Schedule D on any of my California returns or the carry over worksheet on any of my previous CA returns (but I do have them on my federal returns)? I haven't made any adjustments. If this is the case, do I just enter my entire federal carryover to my California carryover when asked? Or will turbotax do it automatically?

I also found this info:

Use California Schedule D (540), California Capital Gain or Loss Adjustment, only if there is a difference between your California and federal capital gains and losses.

Get FTB Pub. 1001 for more information about the following:

• Disposition of property inherited before 1987.
• Gain on the sale or disposition of a qualified assisted housing development to low-income residents or to specific entities maintaining housing for low-income residents.
• Capital loss carryback.