CA capital loss carryover

Forum|Forum|2 years ago
February 26, 2024
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Hello,

I am filing my tax for the year 2023. I also traded stocks and options in the year 2023. I already reported my max loss $3000 at federal level. At last, TT is asking if I have state capital loss carryover.

My question is what is the difference between California capital loss carryover from the Federal level? Do I need to input $3000 again? It seemed as though TT was asking if I had any carryover from the year '2022' which I do not. So, I left the line blank since I did not trade or do any activities in the year 2022.

I have been reading up on Schedule D and other information regarding CA capital loss carryover. However, it seemed the regular stock and such trading activities are not mentioned at the state level. What I had read is CA capital losses normally include any capital gains or losses outside of trading such as real estate, rental, property sales etc which I did not have any of.

I am a CA resident. Please give me your answer. Thank you.

TurboTax Premier Online

ThomasM125

The capital loss figure requested in TurboTax is your previous year loss carryover for California. If you had a California loss carryover from 2022, it would appear on schedule D(540) of your 2022 California tax return. It would be your total net loss for that year as listed on the schedule D(540) line 8, minus $3,000.

I believe the $3,000 loss that you reference is the loss amount allowed on your federal return in the current year. It would not be a carryover, as that would be the amount of loss that you couldn't deduct in the current year that would then be carried over to the next year.

Except in special cases, California follows the same rules for capital gains and losses as is done on your federal income tax return. So, if you didn't have any federal capital loss carryovers from 2022 on your federal tax return, then you likely won't have any California capital loss carryover either.

You can learn more here: CA capital losses

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