I don’t need form 3840 why can’t I move on?

For taxable years beginning on or after January 1, 2014, California requires taxpayers who exchange real property located in California for like-kind property located outside of California, under IRC Section 1031, to file an annual information return, form FTB 3840, California Like-Kind Exchanges, with the Franchise Tax Board (FTB).

Form FTB 3840 must be filed for the taxable year of the exchange and for each subsequent taxable year, generally until the California source deferred gain or loss is recognized. 

ca.gov

If that doesn't apply to you, delete the form:

1. On the menu bar on the left that shows.

1. Select Tax Tools
2. On the drop-down select Tools
3. On the Pop-Up menu select Delete a Form
4. This will give you all of the forms in your return
5. Scroll down to the form you want to delete
6. Select the Form
7. Click on Delete next to form 3840