I received a 1099-B for RSUs granted by my employer. The reported cost basis was $0, so I needed to enter an adjustment based on the market value of the shares at the time of delivery. The adjustment is reflected correctly on my federal forms. However, my CA 540 is not reflecting this cost basis adjustment, and my state capital gain is reported as if I bought the shares at $0. Am I doing something wrong? Should I instead enter the correct value in Box 1E instead of using the "the cost basis is incorrect" option?
You'll need to sign in or create an account to connect with an expert.
A TurboTax CPA rep was able to help me resolve this. It turns out that initially entering a cost basis of $0 was the problem. This generated a CA Schedule D (540) that should only be filled out when the state capital gains/losses are different than the federal. After I entered the correct cost basis, the D (540) was not automatically removed. Manually deleting the form fixed the issue.
I modified my entries in box 1E to reflect the "adjusted cost basis" as shown in my stock plan transactions supplement form. However, my CA 540 still shows on line 6 (Capital Gain or Loss) column C the full value of the sale of the stock, and not just the net gain/loss. When I use Credit Karma, there is no adjustment on this line. At least one of these is wrong. The only differences between using TurboTax and Credit Karma is due to this line. My California taxable income is different between the two programs simply because of this adjustment.
Upon further inspection, it appears that the cost basis on CA Schedule D (540) is still showing a cost basis of $0 for the RSU sales. The federal 8949 shows the correct cost basis. This feels like a bug.
A TurboTax CPA rep was able to help me resolve this. It turns out that initially entering a cost basis of $0 was the problem. This generated a CA Schedule D (540) that should only be filled out when the state capital gains/losses are different than the federal. After I entered the correct cost basis, the D (540) was not automatically removed. Manually deleting the form fixed the issue.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
ajayka
Level 2
martin-hennig101
New Member
sheri1girl
New Member
Dmoral1
Level 1
Siumai
New Member