2020 Capital Loss Carryover / CA Capital Loss Carryover question

[Priller]

Hi all,

So, I'm currently working on my 2021 Tax form and I ran into a Turbotax question that is a bit vague (please see screenshot below):

"California Capital Loss Carryover: " - ???????

I'm a bit confused with the line entry regarding the "California Capital Loss Carryover" since Turbotax just said "Now look at your California Form 540, Schedule D and enter your capital loss carryover, if any, as a positive amount" - which Line in the CA Form 540, Schedule D????

Here is a screenshot of my 2020 CA Form, Schedule D:

 Should I enter 8,206 or 5,206?

[GeorgeM777]

Not sure if you saw the previous response to your post, but the following was previously posted.

No, you do not need to enter anything on line 12a or line 12b.  Because you have no adjustments, there is nothing to enter on lines 12a or 12b.  CA follows federal law in terms of how to report capital gains and capital losses.  

The CA Franchise Tax Board recommends that in connection with reporting capital gains and losses, taxpayers report such items first on their federal return. Capital gains and losses will then transfer to the taxpayers CA return, and if there are adjustments to make, then the CA taxpayer will need to complete CA Schedule D (540).  In your case, there were no adjustments to make.

@Priller

[Priller]

Hi GeorgeM777,

Thank you for your response/posts.

Your insightful comments helped out quite a bit.

However, my original question had to do more with the 2021 Turbotax software and the instructions asking the question shown in the first/top screenshot:

"Now look at your (2020) California Form 540, Schedule D and enter your capital loss carryover, if any, as a positive amount.

California Capital Carryover      ______________"

2021 Turbotax says I have to refer back to my 2020 California Form 540, Schedule D to get a figure to enter in my 2021 interview, but I does not indicate where/which line from the 2020 California Form 540, Schedule D to use...

My last statement/comment inquiry in my original post states: 

"Should I enter 8,206 or 5,206?

If you notice, my original post has two screenshots, the first one is from the 2021 Turbotax interview which is asking info from my 2020 tax return.

The second screenshot is a snapshot of my 2020 CA Form, Schedule D showing the info from my 2020 CA Tax form which I'm being asked to refer to by Turbotax while trying to complete my 2021 Tax Form.

I realize my post could be a bit confusing, but perhaps you could take a second look at my original post from beginning to end to get a better picture of what I'm trying to get help with.

I don't mean to be rude or condescending, just trying to clarify my point/inquiry.

Sorry about this long post/explanation. Thanks for all your help.

[GeorgeM777]

Thank you for the follow-up.  Your carryover amount would be $5,206.  Because your CA Schedule D line 12a is blank and line 12b has a $0, means that you have no CA adjustments to make.  That means that your federal capital loss is no different than your CA capital loss.  

Thus, you will have a $3,000 capital loss on your federal return (line 7 of Form 1040), and your adjusted gross income from your federal return (line 11 of Form 1040) will transfer to line 13 of your CA return, CA Form 540.  Because you have used $3,000 of your total capital loss of $8,206, you will have $5,206 to carryover to tax year 2022.

@Priller

[Priller]

GeorgeM777,

Thank you for your follow up response.

It seems your comments are "partially" correct... As I mentioned in my previous posts, the information being asked in the 2021 Turbotax Step by Step screen relates to data/figures from my 2020 Tax Forms (Federal & CA.)

So, the 2020 data from my 2020 1040 Tax Return, Schedule D and my 2020 CA Form 540, Schedule D is as follows:

2020 FEDERAL: Net Long Term Loss: -8206, Allowable Loss: -3000

2020 CA Form 540, Schedule D: 2020 Net Long Term Loss: -8206, Allowable Loss: -3000 - which implies that My 2020 California Capital Loss Carryover to 2021 is 5206

$5206 is the figure needed in the attached 2021 Turbotax Premier Step Step Questionnaire shown below:

In other words, $5206 is the California Capital Loss Carryover to 2021 and NOT to Tax year 2022 as you stated in your last post.

[bluedeb]

@tagteam Could you help this person out.  He needs more help with the Carryover Loss.

[tagteam]

Since the issue apparently involves a CA capital loss carryover, I can only suggest that @Priller contact Support.

What is the TurboTax phone number? (intuit.com)

[Priller]

Hi all,

Thank you for the suggestion to call the 800 number.

I did call...

Unfortunately, it didn't help because the Turbotax agent was not able to see my 2020 tax forms (Fed or State)...

Oh well, here I am, hoping someone might be able to help me out.