I had a CPA prepare my taxes in 2007. He did a very thorough job.
The following year, I made a big mistake: I used a very popular tax prep program with the initials TT. Now, in 2012 I have discovered that I failed to enter a capital loss carryover of $98,000 on my 540D (California taxes). I entered the right amount for the federal cap loss carryover when I filed the following year - 2008.
So from 2007 to the current year 2012, no CA capital loss carryover was entered. Now, 5 years later, the federal capital loss carryover has been whittled down to about $45,000.
I have a couple of Capital Loss Carryover (CLCO) questions.
1) I believe I can amend back 4 years. Is that right?
2) The 540D capital loss carryover worksheet (CLCO ws) is a carryover to the state tax capital loss and not the federal capital loss carryover for the following year?
It's just a state figure, right?
There are two different carryover figures. The value calculated using the CLCO worksheet in the 540D instructions is used on next year's state tax form, not next year's 1040 schedule D.
3) A lot of people have been telling me to just enter the Fed cap loss carryover for 2012 into the value for the 2012 state 540D form and be done with it. I don't think this is right. I think I need to work thorough the CLCO worksheets from 2007 till present and enter that figure for 2012, and then re-file back to 2008 with the right figures.
4) Finally, this should only affect my State tax forms, not my federal forms. Am I right?
Fortunately, I'm still "deep into" the Carryover, so in the years that I can't amend the CA forms I lost a deduction that would have netted me higher refunds. I won't be owing anything but I lost out on refunds. I don't believe I'll come close to using up the carryover for some time to come.
Sleepless with Worry in Moraga