How to allocate CG Distributions between states for part year CA/ MA residents

[Robin]

I can not figure out how to allocate CG Distributions between a part yr CA & MA. I can use the CA540NR to subtract out the other states interest & dividends but there is no line for the CG Dist & jumping to the sub-schedule it uses the federal CGD, and does not allow for the adjustment for MA. I thought maybe using the DIV input worksheet might be the answer but does seem to work.  Any ideas?

 

 

[Max W]

The California allocation form is CA (540), or CA (540)NR. Notice the parenthesis, it is different than the 540 form.

[Edsel]

Which state is the resident state?  If taxpayer moved during year, which was the resident state as of 12/31?

The crudest, most time-consuming (and probably most accurate) method would be to analyze the statements (not the tax statements) and determine where the taxpayer lived when dividends and CGs were credited to the brokerage account.

 

[Robin]

I have the numbers via the statements that pertain to each state on a spreadsheet. My problem is with line 3 ( Federal CGD) on CA 540(NR) D, which does not seem to allow for adjustments, or at least I can't find where to designate the proper CA CGD. I have properly allocated all the other numbers to the CA filing, just having a problem with the CGD number.

 

 

[Lion EA]

I had a client who moved in 2016 from CT to CA, so I didn't work with 2017 forms.  But, for 2016, we used CA (540NR) California Adjustments - Nonresidents or Part-Year Residents to adjust her interest, dividends and capital gains, as well as wages, refunds, and pension.  We started with column A Federal Amounts, B Subtractions, C additions, D Total Using CA Law, and E CA amounts.  See if 2017 is similar.

[Max W]

Capital gains is on Line 13 of both CA (540)NR and the CA (540).  

You may have to use Non-resident returns for both states.  

[jklcpa]

3 hours ago, Robin said:

I have the numbers via the statements that pertain to each state on a spreadsheet. My problem is with line 3 ( Federal CGD) on CA 540(NR) D, which does not seem to allow for adjustments, or at least I can't find where to designate the proper CA CGD. I have properly allocated all the other numbers to the CA filing, just having a problem with the CGD number.

 

 

I have no idea if this will help since I no longer use ATX, but the instructions for the 540NR and column E of the CA540NR say that the cap gain figure in col E is pulled from the California Sch D.  I'm just guessing, but if the program isn't generating that form, perhaps that is your problem and you have to find a way to key the data to make that happen.   Another guess would be to input the sources of all CGDs as Federal only, then enter again designated as state-only input with appropriate amounts broken down by each state.

Just my best guess.

[Catherine]

I won't even touch the CA question, but I can discuss the MA part.  If that state gives you trouble, send me a message or re-post here.

[joanmcq]

Did my own return when I moved from California last year. On the input worksheet for the sales, make sure the state is coded correctly. It will default to the resident state on the return address.