joshuabarksatlcs
Level 10

This is how I understand your given facts:

FL resident; CA full-year Non-resident

1099-R showed an amount for CA withholding.  I presume the distributions are NON-taxable for CA, but it really doesn't matter for the issue you raised (how to generate Sch D).

1041 Sch K-1 showed capital gains for sale of FL property.  Thus NOT CA sourced.

In Screen 20, Line 4(a) enter the capital gain and specify US (my presumption: NO FL income tax return is filed, thus the source would be US, and not FL).

Sch D for CA would be generated showing the same CG amounts as federal - this is how CA NR returns work.  

The magic for CA adjustment happens on Sch CA NR where you should see zero amount under CA Source (the right most column, i.e. Column E) for Part II Line 7. 

However, if for some reason the annuity is subject to CA tax, you would see the CA sourced amount on Part II Line 5 Col E. 

You would see the amounts under Column D (Total amount using CA Tax Law) identical to federal amounts under column A.

There would be numbers under Column B or C IF there was a difference between Fed and CA amounts, resulting a different amount (from federal) for Column D.  This would be applicable if the item(s) is/are California sourced.   For example if there was a R/E sale in CA and the Fed basis was different from CA.

In your case, the Sch D for CA would NOT have different amounts from federal, because there would NOT be a different amount for Column D. 

I hope this helps.


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