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March 19, 2025
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CA and UT capital gain/loss incorrect reporting

  • March 19, 2025
  • 1 reply
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I am an UT resident but have rental properties in CA. For 2024, this means I have to file CA and UT state tax returns.

 

I have completed my federal tax returns and now working on CA tax returns.

 

For items such as interest, dividend, etc, there are fields to indicate CA amount which I put as 0. And the forms show these as 0, which are correct.

 

For stock trading and schedule K-1 from partnership & S-corp, these are 100% attributed to UT state. 

When doing Turbotax CA section, I select "Allocate by resident and nonresident ratios".

The next page, for these transactions, under "CA Src As in NR", I entered all "0".

This passes review / check.

 

I checked the forms and find all the stock trading and schedule K-1 incomes are listed in CA state returns. These should be in UT state instead. 

 

Pls help!!!

Best answer by MAK70

California uses all your income but only applies the percentage of California-source income to the tax to determine how much is due.  (You prepare the return "as if" you were a California resident, then apply the percentage of CA income to the total tax for the amount due.)

1 reply

MAK70Answer
March 20, 2025

California uses all your income but only applies the percentage of California-source income to the tax to determine how much is due.  (You prepare the return "as if" you were a California resident, then apply the percentage of CA income to the total tax for the amount due.)

March 20, 2025

@MAK70 Thanks! Checking Schedule CA (540NR) the CA amounts is indeed 0!