Fillable Schedule D (540) - Capital Gain Or Loss Adjustment

• Special Credits – California law authorizes special tax credits not

For example:

allowed under federal law or computed differently under federal law. In

Loss on line 10 is less than loss on line 11.

many instances if you claimed special credits related to capital assets,

Federal loss on line 10 is . . . . . . . . . . . . . . . . . . . . . . . . . . . . .($1,000)

you must reduce your basis in the assets by the amount of credit.

California loss on line 11 is . . . . . . . . . . . . . . . . . . . . . . . . . . .($2,000)

Difference between line 10 and line 11 . . . . . . . . . . . . . . . . . . $1,000

• Qualfied Small Business Stock – California does not conform to the

Gain on line 10 and loss on line 11.

qualified small business stock deferral and gain exclusion under IRC

Federal gain on line 10 is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,000

Section 1045 and IRC Section 1202. Enter the entire gain realized in

California loss on line 11 is . . . . . . . . . . . . . . . . . . . . . . . . . . .($3,000)

column (e).

Difference between line 10 and line 11 . . . . . . . . . . . . . . . . . . $6,000

Other adjustments may apply differently to the federal and California

Line 12b – Compare the amounts on line 10 and 11 to figure the

basis of your capital assets. Figure the original basis of your asset using

adjustment to enter on Schedule CA (540), line 13, column C.

the California law in effect when the asset was acquired, and adjust it

according to provisions of California law in effect during the period of

For example:

your ownership.

Loss on line 10 is more than loss on line 11.

Line 2 – Net Gain or (Loss) Shown on California Schedule(s) K-1

Federal loss on line 10 is . . . . . . . . . . . . . . . . . . . . . . . . . . . . .($2,000)

(100S, 541, 565, and 568). Combine gain(s) and loss(es) from all

California loss on line 11 is . . . . . . . . . . . . . . . . . . . . . . . . . . .($1,000)

California Schedule(s) K-1 (100S, 541, 565, and 568), Share of Income,

Difference between line 11 and line 10 . . . . . . . . . . . . . . . . . . $1,000

Deductions, Credits, etc. See California Schedule K-1 (100S, 541,

Loss on line 10 and gain on line 11.

565, and 568) instructions for more information on capital gains and

Federal loss on line 10 is . . . . . . . . . . . . . . . . . . . . . . . . . . . . .($2,000)

losses. Enter the net loss on line 2, column (d), or the net gain on line 2,

California gain on line 11 is . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,000

column (e).

Difference between line 10 and line 11 . . . . . . . . . . . . . . . . . . $7,000

Line 3 – Capital Gain Distributions. If you receive federal Form 2439,

California Capital Loss Carryover Worksheet

Notice to Shareholder of Undistributed Long-Term Capital Gains, from a

1. Loss from Schedule D (540), line 11, stated as a

mutual fund, do not include the undistributed capital gain dividends on

positive number. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 _________

Schedule D (540). If you receive federal Form 1099-DIV, Dividends and

2. Amount from Form 540, line 17 . . . . . . . . . . . . . . . . . 2 _________

Distributions, enter the amount of distributed capital gain dividends.

3. Amount from Form 540, line 18 . . . . . . . . . . . . . . . . . 3 _________

Line 6 – 2013 California Capital Loss Carryover. If you were a resident

4. Subtract line 3 from line 2. If less than zero, enter

of California for all prior years, enter your California capital loss carryover

as a negative amount. . . . . . . . . . . . . . . . . . . . . . . . . . 4 _________

from 2013. However, if you were a nonresident of California during any

5. Combine line 1 and line 4. If less than zero,

taxable year that generated a portion of your 2013 capital loss carryover,

enter -0-. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 _________

recalculate your 2013 capital loss carryover as if you resided in California

for all prior years. Get FTB Pub. 1100, Taxation of Nonresidents and

6. Loss from Schedule D (540), line 8 . . . . . . . . . . . . . . . 6 _________

Individuals Who Change Residency, for more information. Enter your

7. Enter the smaller of line 1 or line 5 . . . . . . . . . . . . . . . 7 _________

California capital loss carryover amount from 2013 on line 6.

8. Subtract line 7 from line 6. This is your capital loss

carryover to 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 _________

Line 8 – Net Gain or Loss. If the amount on line 4 is more than the

amount on line 7, subtract line 7 from line 4. Enter the difference as a

gain on line 8.

If the amount on line 7 is more than the amount on line 4, subtract line 4

from line 7 and enter the difference as a negative amount on line 8.

Use the worksheet on this page to figure your capital loss carryover to

2014.

Line 9 – If line 8 is a net capital loss, enter the smaller of the loss on

line 8 or $3,000 ($1,500 if you are married or an RDP filing a separate

return).

Line 12a – Compare the amounts entered on line 10 and line 11 to figure

the adjustment to enter on Schedule CA (540), line 13, column B.

Page 2 Schedule D (540) Instructions 2014

Schedule D (540) - Capital Gain Or Loss Adjustment - 2014 Page 4

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