State of Hawaii N-11 Line 18 - Automatically Filled

Forum|Forum|5 years ago
March 15, 2021
2 replies
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Aloha,

I've recently posted an issue I was having with inputting data from a property sale in another state (Nevada) into my Federal returns. However, I think the method of which I inputted the information caused another issue in my state return.

Former TurboTax Thread on Property Sale

I ended up filling that portion with 100% of my half of the cost basis, proceeds, etc. Prior Depreciation, I kept the same at $24,007. There was a section somewhere I didn't understand that I can't get back to that asked about depreciation in State of Hawaii and it said "if you don't know, just input the federal amount" but I actually placed "0" and now I can't find that menu.

What I would like to know is how Line 18 of the N-11 is automatically calculated because it listed $101,470 - I can't delete it or edit it. It seems to have a mind of it's own and it's deflating my total taxable income for State of Hawaii so bad, it looks like I worked at McDonalds this year.

Where should I begin to look for the cause of this issue or is it absolutely fine because of some back end work and the property being in a state with no income tax. Please help me understand or fill you in on what's happening so we can properly have this addressed.

Audit meter is right between medium and high and I'd just like it dropped to at least 50% or below.

TurboTax Home & Biz Windows

ToughQuestionsAuthor

For those of you who may be curious, it seems that the cost basis for the property is being written off the state taxes. Which is interesting, but if that's how it works, that's how it works.

AmyC

Employee

You pay taxes on the gain for both state and federal. Your federal should also have the basis subtracted out. Sales price $144,000 minus basis = gain on return. The basis is what you paid plus improvements plus sales expenses - depreciation $24,007 + depreciation not allowed.

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ToughQuestionsAuthor

Aloha Amy,

I can see that the cost basis is taken out of the Fed and it does list capital gains at around $70,000 in addition to my salary and other pieces. Therefore the Federal AGI seems correct on it's own.

Though, if this is the case, the cost basis is taken out twice from the state tax without any of my own input which makes a whole lot of sense why the Hawaii AGI is so low. It comes out to Federal AGI - Cost basis (a second time) = Hawaii AGI.

I played with the cost basis numbers. Putting all 0s, for example. However, that caused the Line 18 on the N-11 to glitch and grow out of proportion and there's no real good way of fixing this issue.

I may need to manually fill out the state tax form if the implication is that there's double cost basis deductions from the state tax form.

Any suggestions on where to go from here other than to go that route?

oiwi808

Having this issue where turbo tax automatically added my entire W2 amount automatically. I am able to override it to delete the line but then when I try to e file it says that I shouldn't override the form. It's very frustrating because if I leave it there it says I'm getting a return of over $5000 which I know is wrong. When I delete that line it says I owe $35 which sound much more accurate.

Anyone know how to resolve this?

ToughQuestionsAuthor

I'm not sure if my issue was the same, but I will say that I made a new tax return without "importing from last year" then manually filled everything out and eventually it came out to a reasonable number. Not sure if that'll help in your case, but that's what I ended up doing for mine and I think it worked out well.