Yes, the California instructions for Schedule D do state that you need to use the form only if there is a difference between your California and federal capital gains and losses. However, you should answer all of the questions in the California interview to ensure that any differences are calculated correctly.
The California tax return Form 540 package in TurboTax may include a California Schedule D if you have any California capital gains and losses from the entries you make while completing the Federal return. In some cases, there may be California differences in how the gains and losses are calculated.
TurboTax will ask questions in the California interview in order to capture any information needed to adjust the entries on the California Schedule D. If there aren't any differences, then any California Schedule D prepared by TurboTax will show the same gains and losses as the Federal return.
The California Form 540 starts with your Federal Adjusted Gross Income and summarizes any differences between Federal and California on Schedule CA where the additions and subtractions are listed.
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