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New Member
posted Jun 1, 2019 12:42:05 PM

For California income tax, what is "net gains from property not held for investment"?

0 7 4074
7 Replies
Level 15
Jun 1, 2019 12:42:06 PM

Do you have one, two, three or more homes?

If you sold any of those, that's what is referred to.

New Member
Feb 18, 2020 8:27:58 AM

Hmm, I have this same issue. Doing my CA taxes and it says "Gain from property  not held for investment. You have a net gain in the amount of $1,229  reported on your federal return." I own one home but did not buy or sell any property this year. I am not sure if I made a mistake in my federal return. Do you know where this section would be in my federal return so I can troubleshoot? Thanks!

Level 1
Mar 1, 2020 7:06:17 PM

I am pretty sure that this item actually refers to your investments, like stocks, not homes. In this context, stocks and similar investments are called "investment properties".

Expert Alumni
Mar 1, 2020 7:35:08 PM

Correct. Any gains reported on Schedule D and Form 8949 will carry to the state return. This includes stocks or other properties reported as a sale for gain or loss.

Level 15
Mar 3, 2020 5:44:20 PM

stocks and similar are "investment securities". land with/without a home is real property. aka real estate.

New Member
Jun 20, 2020 4:26:04 PM

Victoria and Turbotax both seem to be referring to stocks as property, which I think is confusing people. While legally in some cases stocks can be interpreted as intangible property, most people understand a stock as a share of ownership in a corporation or other appropriate entity, rather than "property".

New Member
Jul 14, 2020 7:20:44 PM

Does anyone know how the system calculates this number? My california net gain is significantly higher than the actual gain I made or is showing in my Federal return, and I'm having trouble understanding how the system calculated this.