Client is a resident in CA but has income from real estate in Utah. He deferred some gain into an Opportunity Zone in 2021. Software seems to be getting the numbers right, but something is bothering me. On the TC 40 it's not adding back the deferred gain to the Federal Adjusted Gross Income. I think this means that he's being taxed on a higher percentage of his income in Utah than he should be (TC 40B state allocation). Should I be manually adding an adjustment to income on the TC 40? And if so, I don't see a way to do that without causing the total Utah income to double count the gain.

If you've read this far, thanks.