Schedule D (540): California Capital Gain or Loss Adjustment (2025)
California · FTB · Used for tax years 2025
Schedule D (540) is the 2025 California Capital Gain or Loss Adjustment schedule. It lists property descriptions, sales prices, costs or other bases, and resulting gains or losses.
Who files this form
Schedule D (540) calculates the California capital gain or loss adjustment for tax year 2025.
Do not complete this schedule if all of your California gains and losses are the same as your federal gains and losses.
What you'll need
Have the following information and forms available, as applicable:
- Your name as shown on your return and your SSN or ITIN.
- Property descriptions, sales prices, and costs or other basis for the transactions you report.
- California Schedules K-1 (100S, 541, 565, and 568), showing net gains or losses.
- Federal Form 1099-DIV, box 2a, for capital gain distributions.
- Your California capital loss carryover amount from 2024, if any.
- Federal Form 1040 or 1040-SR, line 7a, showing your federal gain or loss.
- Schedule CA (540), where you enter the adjustment calculated on this schedule.
Common mistakes
- Completing the schedule unnecessarily: the form says not to complete it if all California gains and losses are the same as the federal amounts.
- Overlooking the instruction references: the form directs you to the instructions for the California capital loss carryover on line 6 and the loss limit on line 9.
Questions people ask
How do I calculate a gain or loss for a property sale?
If the cost or other basis is greater than the sales price, subtract the sales price from the basis and enter the loss in column (d). If the sales price is greater than the basis, subtract the basis from the sales price and enter the gain in column (e).
Where do I enter a California capital loss carryover from 2024?
Enter it on line 6. The form directs you to the instructions for this line.
What amount do I enter on line 9 if line 8 shows a loss?
Enter the smaller of the loss on line 8 or $3,000 ($1,500 if married/RDP filing separately). The form also directs you to the instructions.
Where does the California adjustment go?
If line 10 is more than line 11, enter the difference on line 12a and Schedule CA (540), Part I, Section A, line 7a, column B. If line 10 is less than line 11, enter the difference on line 12b and Schedule CA (540), Part I, Section A, line 7a, column C.