Does anyone have an idea on how to fix a Lacerte diagnostic that I am receiving when filing form 3840 for CA. I have called Lacerte, but no one is answering and their callback is not working. I know I have a # off somewhere, but cannot figure what!
Diagnostic from Lacerte reads as follows:
Schedule A, Part I: If Ln 1 Property is checked as property in CA – Ln8, Part II and Part III are required for electronic filing purposes. Please review the data entered for Total CA Source Deferred Gain, Properties Given Up, and Properties received in the State & Local, Other Forms, CA like-kind exchanges Screen or in the Depreciation Screen (ref#2053385)
In the depreciation input screen under CA Like Kind Exchanges did you check the box that CA property was exchanged for property outside CA? If so, that may be triggering the CA source message even though all of the property is in CA.
Thank you Diane. I finally got a call from Lacerte. It appears the answer was on Screen 57, Other – CA Like-Kind Exchanges (3840). There was a loss from the property exchange that had increased the basis of the property (not a gain). And, the software could not accommodate a negative amount. Therefore, under Sch A, Properties received, and allocation of def gain, there needs to be an amount. We ended up posting a $1 to solve the problem.