Is there is a bug in Schedule D of Massachusetts state Turbo Tax software resulting in over calculation of Capital Gains?.

[jeffwk]

I have a capital loss (negative amount) on line 9 of Massachusetts State Schedule D software resulting from a loss in the sale of stock shares.  I also show a capital loss on line 10 resulting from the sale of my primary residence.  When the two are added together on line 11 "Adjusted Capital Gain/Loss" the result shows as a capital gain (a large positive amount).  The impact is a significant tax payment owed to the state of Massachusetts which is incorrect.  How do I resolve?

[IreneS · Accepted solution]

UPDATED FOR TAX YEAR 2019

Please make sure your software is up-to-date--the MA Schedule D does appear to be calculating correctly. 

Keep in mind that a capital loss resulting from the sale of a personal residence is not deductible on either your federal or MA returns, so the only loss that should show is the loss from the sale of your stock.

You should not see an entry on line 10 of MA Sch. D since those are adjustments for differences between federal and MA tax law.

To resolve this issue, please follow these steps:

1. Go into Forms Mode by clicking on the Forms icon in the top right of the blue bar.  
2. In the Forms in My Return list on the left, under Massachusetts Individual, double-click on Schedule D.  
3. If you have any entries in the Capital Gain/Loss Differences Smart Worksheet for Line 10, delete them.
4. You should now have a zero on line 10 and the capital loss from your stock sale on line 11.
   
5. To return to the interview, click on the Step-By-Step icon in the top right of the blue bar.

[Edited | 3/23/2020 |  11:23 am PDT]

[jkitchenka]

Is there a way to edit Ma Schedule D from the online version?  I have duplicate entries but cannot seem to delete them?