California CA 540NR rental property income/loss

Forum|Forum|11 months ago
April 23, 2025
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The amount reported in the Federal 1040 gets adjusted in the CA 540NR. What is the adjustment for and how is it calculated? There is no reconciliation or explanation provided in Turbotax.

Ask the Experts - Amend - April 2025

SharonD007

CA starts with your federal adjusted gross income and then subtracts your federal itemized deductions to come up with California taxable income (after some state-specific adjustments). This is the amount of tax if all your income was earned in CA. Next, CA calculates the tax on the CA percentage of this income. So if 20% of your total income is from CA, you pay 20% of the base tax.

Review Form 540-NR, lines 31 - 42 to review how CA calculates your taxable income.

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