Schedule D (540) - California Capital Gain Or Loss Adjustment - 2010
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1
2TAXABLE YEAR
SCHEDULE
California Capital Gain or Loss Adjustment
2010
D (540)
Do not complete this schedule if all of your California gains (losses) are the same as your federal gains (losses).
Name(s) as shown on return
SSN or ITIN
-
-
(a)
(b)
(c)
(d)
(e)
Description of property
Sales price
Cost or other basis
Loss
Gain
Identify S corporation stock
If (c) is more than (b),
If (b) is more than (c),
Example: 100 shares of “Z” (S stock)
subtract (b) from (c)
subtract (c) from (b)
1a
1b
2
Net gain or (loss) shown on California Schedule(s) K-1 (100S, 541, 565, and 568) . . . . . . . . . . . . . . . 2
3
Capital gain distributions (federal Form 1099-DIV, box 2a minus box 2c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
4
Total 2010 gains from all sources. Add column (e) amounts of line 1a, line 1b, line 2, and line 3 . . . . . . . . . . . . . . . . . . . . . . . . 4
5
2010 loss. Add column (d) amounts of line 1a, line 1b, and line 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 (
)
6
California capital loss carryover from 2009, if any. See instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . 6 (
)
7
Total 2010 loss. Add line 5 and line 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 (
)
8
Combine line 4 and line 7. If a loss, go to line 9. If a gain, go to line 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
9
If line 8 is a loss, enter the smaller of: (a) the loss on line 8.
(b) $3,000 ($1,500 if married or an RDP filing a separate return). See instructions . . . . 9 (
)
10
Enter the gain or (loss) from federal Form 1040, line 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
11
Enter the California gain from line 8 or (loss) from line 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
12
a If line 10 is more than line 11, enter the difference here and on Schedule CA (540), line 13, column B. . . . . . . . . . . . . . . .12a
b If line 10 is less than line 11, enter the difference here and on Schedule CA (540), line 13, column C. . . . . . . . . . . . . . . . .12b
Instructions for California Schedule D (540)
California Capital Gain or Loss Adjustment
References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 2009, and to the California Revenue and Taxation Code (R&TC).
General Information
• Capital loss carryback.
• Capital gain on Cash for Clunkers rebates under the federal Car
In general, for taxable years beginning on or after January 1, 2010,
Allowance Rebate System (CARS) program.
California law conforms to the Internal Revenue Code (IRC) as of
Exclusion of Gain on Qualified Small Business Stock. California law
January 1, 2009. However, there are continuing differences between
(R&TC Section 18152.5) provides an exclusion (similar to the federal
California and federal law. When California conforms to federal tax law
exclusion under IRC Section 1202) of 50% of the gain on the sale of
changes, we do not always adopt all of the changes made at the federal
qualifying small business stock originally issued after August 10, 1993,
level. For more information, go to ftb.ca.gov and search for conformity.
that was held for more than five years. However, for California purposes,
Additional information can be found in FTB Pub. 1001, Supplemental
at least 80% of the issuing corporation’s payroll must be attributable to
Guidelines to California Adjustments, the instructions for California
employment located within California, and at least 80% of the value of the
Schedule CA (540 or 540NR), and the Business Entity tax booklets.
corporation’s assets must be used by the corporation to actively conduct
The instructions provided with California tax forms are a summary of
one or more qualified trades or businesses in California.
California tax law and are only intended to aid taxpayers in preparing
If you have gain on the sale of qualified small business stock that
their state income tax returns. We include information that is most useful
qualifies for the federal Section 1202 exclusion, go to the specific line
to the greatest number of taxpayers in the limited space available. It is
instructions for line 1b.
not possible to include all requirements of the California Revenue and
Taxation Code (R&TC) in the tax booklets. Taxpayers should not consider
Installment Sales. If you sold property at a gain (other than publicly
the tax booklets as authoritative law.
traded stocks or securities) and you will receive a payment in a tax year
after the year of sale, you must report the sale on the installment method
For purposes of California income tax, references to a spouse, husband,
unless you elect not to do so. Get form FTB 3805E, Installment Sale
or wife also refer to a California registered domestic partner (RDP),
Income. Also, use that form if you received a payment in 2010, for an
unless otherwise specified. When we use the initials RDP they refer to
installment sale made in an earlier year.
both a California registered domestic “partner” and a California registered
domestic “partnership,” as applicable. For more information on RDPs,
You may elect not to use the installment sale method for California by
get FTB Pub. 737, Tax Information for Registered Domestic Partners.
reporting the entire gain on Schedule D (540) (or Schedule D-1, Sale of
Business Property, for business assets) in the year of the sale and filing
Purpose
your return on or before the due date.
Use California Schedule D (540), California Capital Gain or Loss
At-Risk Rules and Passive Activity Limitations. If you dispose of (1) an
Adjustment, only if there is a difference between your California and
asset used in an activity to which the at-risk rules apply, or (2) any part of
federal capital gains and losses.
your interest in an activity to which the at-risk rules apply, and the amounts
in the activity for which you are not at risk, get and complete federal
Get FTB Pub. 1001, for more information about the following:
Form 6198, At-Risk Limitations, using California amounts to figure your
• Disposition of property inherited before 1987.
California deductible loss under the at-risk rules. Once a loss becomes
• Gain on the sale or disposition of a qualified assisted housing
allowable under the at-risk rules, it becomes subject to the passive activity
development to low-income residents or to specific entities
rules. Get form FTB 3801, Passive Activity Loss Limitations.
maintaining housing for low-income residents.
7761103
For Privacy Notice, get form FTB 1131.
Schedule D (540) 2010
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