California form 3840

[CEM05]

Will Turbotax fill out California form 3840 based on the two 8824 forms as completed in my return?

Or do I have to fill out the form and add it to the California return so it can be filed with my return through Turbotax?

Or mail the California return?

Thank You 

[will2020tax]

Same question here. I completed the forms necessary for the like-kind exchange on the federal portion. Now I see per the CA FTB website I need to file California form 3840. Won't Turbotax automatically complete this form for me?

[RobertB4444 · Accepted solution]

@CEM05 & @will2020tax  TurboTax will complete form 3840 using the information you have already entered for the exchange in your federal return.  As always please review this information before filing.

[ghettodawg]

In 2021 I did a 1031 exchange of a rental property (from a property in California to a property in Georgia).

I am doing my 2021 taxes, using TurboTax Home & Business.

In my California state taxes: Turbotax generated form 8824 (california copy), but it did not generate form FTB 3840 ! I went through the final review and it's ready for filing. What should I do to create this form?

[earth777]

I have the same issue.  Turbotax is not generating Form 3840.  how do i trigger it?   i did go thru the like kind exchange question in the CA part.     Fed 8824 is completed...

[MonikaK1]

To get to CA Form 3840 and include it with your 2025 return, go to the California state return interview. When you get to the screen, "Here's the income that California handles differently", scroll down to the section labeled Investments and select "Like-Kind Exchanges for Property Located Outside California", then Yes to complete the form.

For Question B, select the radio button for Annual FTB 3840 if this is not the year of the exchange.

All taxpayers, regardless of residence status or commercial domicile, who exchange real property located in California for like-kind property located outside of California, must file form FTB 3840 with their California tax return. TurboTax will prepare the form and include it with the California return.

Form FTB 3840 must be filed for the taxable year of the exchange and for each subsequent taxable year, generally until the California source deferred gain or loss is recognized on a California tax return. 

See here for 2024 California information and instructions for the completion of Form 3840.

See here for the actual Form 3840.

@earth777 

@ghettodawg 

[earth777]

thank you - that did it!

also for Question B, i opted for Initial not Annual as my exchange was done in 2025.     

Suggestion for TT - should create an error if user has F8824 and did not realize they need to initiate the outside of CA interview for F3840.. this will result in mistakenly filing CA without 3840.   (for following years, would be also great if TT remind user or prompts to keep filing F3840)

thanks!