Schedule D-1: Sales of Business Property (2024)
California · FTB · Used for tax years 2024
California Schedule D-1 reports gains and losses from sales or exchanges of business property and involuntary conversions. It also calculates recapture amounts under IRC Sections 179 and 280F(b)(2) when business use drops to 50% or less.
Who files this form
Complete and attach the 2024 California Schedule D-1 to your tax return only if your California gains or losses differ from your federal gains or losses.
The schedule covers sales of business property, involuntary conversions, and recapture amounts under Internal Revenue Code (IRC) Sections 179 and 280F(b)(2).
What you'll need
Have the following information and applicable forms available:
- Your name as shown on your tax return and the identifying number requested on the schedule.
- Property descriptions, acquisition and sale dates, gross sales prices, cost or other basis, improvements, and selling expenses.
- Depreciation or depletion allowed or allowable for the property.
- Federal Forms 1099-B or 1099-S, or substitute statements, for 2024 proceeds included on the schedule.
- Federal Form 4684 for casualty and theft amounts, Form FTB 3805E for installment sales, and federal Form 8824 completed using California amounts for like-kind exchanges, if applicable.
- Nonrecaptured net IRC Section 1231 losses from prior years, if applicable.
- For individual returns, federal Schedule 1 (Form 1040), line 4, to compare federal and California ordinary gains or losses.
How to file
Complete Schedule D-1 and attach it to your tax return only if your California gains or losses differ from your federal gains or losses.
The supplied form does not provide a mailing address or e-file directions.
Common mistakes
- Do not attach Schedule D-1 when your California and federal gains or losses are the same. The form says to attach it only when they differ.
- Use federal Form 4684 to report involuntary conversions from casualty and theft, as directed in Part I.
- Complete Part II, Section B only for individual tax returns, Forms 540 and 540NR.
- In Part III, complete the property columns A through D for lines 23 through 32b before moving to line 33.
- Skip the IRC Section 1252 section if you did not dispose of farmland or if you are completing the form for a partnership.
Questions people ask
Where does the form report property held for more than one year?
Part I covers sales or exchanges of trade or business property and involuntary conversions other than casualty and theft for property held more than one year.
Where are ordinary gains and losses reported?
Part II, Section A covers ordinary gains and losses. Line 10 includes property held one year or less and ordinary gains and losses not included on lines 11 through 16.
How do individual filers compare California and federal ordinary gains or losses?
Part II, Section B compares the federal amount from Schedule 1 (Form 1040), line 4, with the California amount from Schedule D-1, line 18b. Line 21 directs the difference to the appropriate column of Schedule CA (540 or 540NR).
What is Part IV for?
Part IV calculates recapture amounts under IRC Sections 179 and 280F(b)(2) when business use drops to 50% or less. Line 38 subtracts line 37 from line 36 to calculate the recapture amount.