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. See here for California information on like-kind exchanges.
TurboTax will prepare the form and include it with the California return.
If you didn't exchange California property for property located outside of California, and deleting the form doesn't resolve the issue, you could try deleting the California return and starting over.
Review your entries in the Federal return regarding the property exchange before redoing the California return to make sure there aren't any entries that could indicate that the replacement property is located out of state.
I have not found any current reported issues with this form. Please let us know if you continue to have this issue after taking the steps above.
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