In the California resident and nonresident tax returns, Schedule D-1 is used to report the sale or exchange of business property when the California basis of the asset(s) is different from the federal basis due to differences between California and federal law.
Schedule D-1 doesn't need to be included in the return if the gains or losses from the sale or exchange of assets used in a trade or business are the same in the federal return and the California return.
To include Schedule D-1 in the California resident individual tax return (Form 540) in TaxSlayer Pro, from the California Tax Return Menu select:
- California Taxable Income
- California Subtractions from Federal AGI or California Additions to Federal AGI
- Other Gain/Loss (4797)
- Is California D-1 required to be filed? - Answer YES.
To include Schedule D-1 in the California nonresident individual tax return (Form 540NR) in TaxSlayer Pro, from the California Tax Return Menu select:
- California Taxable Income
- California Subtractions from Federal AGI or California Additions to Federal AGI
- Total Income
- Other Gain/Loss (4797)
- Is the California Schedule D-1 Required To Be Filed? - Answer YES.
Note: If Schedule D-1 includes an amount on line 4 "IRC Section 1231 gain from installment sales from form FTB 3805E, line 26 or line 37" or line 15 "Ordinary gain from installment sales from form FTB 3805E, line 25 or line 36", the California return will not be e-fileable.