2009689

1 Cheer

The following diagnostic is generating: ref #2009689 - This asset is associated with a state that is different from the state identifier that is associated with the Sch E. This asset is from a 1031X out of CA and into GA. I need the CA basis to be higher than the GA basis. Can I still efile federal and state returns with this diagnostic?

strongsilence · ‎08-11-2023

If it is NOT a critical diagnostic, then you can efile. I would investigate this because there could be a depreciation amount error for each state or another difference from this mismatch that isn't right.

Why does the basis decrease in a 1031 from one state to another?

sjrcpa · ‎08-11-2023

@strongsilence CA has different rules for depreciation than federal. So at the time of the 1031 exchange, the federal and CA bases would likely be different.

strongsilence · ‎04-11-2024

I don't know how to keep the state codes from changing. As a result, I frequently get this diagnostic.

Is there a way to change the state codes for ALL assets at one time.