California Personal Theft Loss/ Lacerte

Technical topics regarding tax preparation.
#1
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Have a CA client with a personal property theft loss. I cannot get Lacerte to ignore at Federal level (since no longer deductible), but allow at the CA level. Any thoughts?
 

#2
Joan TB  
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Are you starting on Depn, Form 22? You could try using only the state fields for cost, etc. I also notice that there is a checkbox down in the section called Additional Disposition Information where you can indicate "nontaxable to federal". This indicates that the property applies to the state return only.
 

#3
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Joan TB wrote:Are you starting on Depn, Form 22? You could try using only the state fields for cost, etc. I also notice that there is a checkbox down in the section called Additional Disposition Information where you can indicate "nontaxable to federal". This indicates that the property applies to the state return only.


Doing it under 17.1 (dispositions). I clicked the "nontaxable to Fed" to clear the diagnostic. Form 4684 section is filled out correctly with no disaster selected since not applicable.
 

#4
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Diagnostic if I do not check "nontaxable to Federal" is "Personal casualty losses are deductible to the extent they are the result of a federally declared disaster. An exception to this allows non-disaster personal casualty losses to offset any personal casualty gains for the year. If there are no personal casualty gains to report, no non-disaster personal casualty losses should be included of Form 4684. Please either remove the disposition, or select the federally declared disaster loss that resulted in a personal casualty. If the casualty is to be reported on a non-conforming state return, please indicate the disposition is nontaxable for the federal return. ref #2051326"
 

#5
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So if you check the "nontaxable to Federal" , what is the problem. Is it not showing up on California?
 

#6
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Seaside CPA wrote:So if you check the "nontaxable to Federal" , what is the problem. Is it not showing up on California?


Correct, it doesn't affect the CA return at all. This is a single state/resident return.
 

#7
Joan TB  
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In your cost fields, did you use only the federal input fields? In this case, shouldn't you use only the state input fields? (because of the "state, if different"?)
 

#8
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Joan TB wrote:In your cost fields, did you use only the federal input fields? In this case, shouldn't you use only the state input fields? (because of the "state, if different"?)


I just tried that, no luck.
 

#9
Joan TB  
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My comment regarding input fields was because for some reason I was thinking you were starting with Form 22. But now I see that you said in Post #3 that you are starting with Form 17.1, but I don't see any state specific input fields on 17.1 for cost. However, note that I do not have any states loaded, but you do, so that may explain that difference for 17.1

So when you said you tried it (see Post #8) were you talking about Form 22 or 17.1?
 

#10
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Joan TB wrote:My comment regarding input fields was because for some reason I was thinking you were starting with Form 22. But now I see that you said in Post #3 that you are starting with Form 17.1, but I don't see any state specific input fields on 17.1 for cost. However, note that I do not have any states loaded, but you do, so that may explain that difference for 17.1

So when you said you tried it (see Post #8) were you talking about Form 22 or 17.1?


17.1. I cannot try 22 since it is personal property. I've put in a request to Lacerte support.
 


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