Saleof rental property in California

[briandsmith]

I sold a rental property in CA last year.

I am a non resident of California. In checking my taxes for the CA return, TT has put numbers  in column E of Adjustments for form 540 NR that I would argue with, since they are not income earned in CA. Specifically line3b (Dividends) and line 7 (Capital gains) of section A. In line 7 I would have expected to see the gain on my rental sale but not all of my Capital gains?

Also in Line 5 of section B, it shows a loss in column A (which comes primarily from my other rental property in Seattle and it agrees with the bottom line of Schedule E in my Federal return) but in column C it shows a huge gain. I'm not sure where that number comes from. There is no such number on Schedule E of the Federal return.

I've searched through the CA instructions but they are so long and complicated, I get hopelessly lost!

[DavidD66]

There are screens in the California state tax return section of TurboTax where you allocate the amount of particular types of income to California.  You should revisit the California state section and go through each screen until you come to the capital gain/loss allocation page, as well as the rental income allocation.

[briandsmith]

Thanks for the reply. I was able to get my dividends removed that way but cannot find my way to the Capital gains. Also the gain addition in the rents and royalties line I cannot find anywhere that that comes from. It appears in the interview but when trying to edit. it doesn't give me the opportunity. Any suggestions?

[RobertB4444]

@briandsmith  You should be able to adjust all of your income through the method that @DavidD66 has mentioned.  If you are unable to do so then you should delete your California return and start over (make sure to do the non-resident return before the resident return).  That will take you through the interview again.  Pay careful attention to the discussion of income and California treatment.