Client is and has always been a CA non-resident. He bought unimproved land and held it for some years. He sold the land in 2012 at a loss. As he only had this CA loss to report in 2012, no CA return was filed. In 2016, he bought a house in CA as a vacation property. In 2018, he sold property at a taxable gain.
Does Client have a CA long term capital loss carryforward from 2012?
And if so, can he use it against the 2018 gain?
If he has a long term capital loss, should he file the 2012 return and report the loss or just pick it up on his 2018 return as if the return had been filed?
Submitted by Clifton B Shoolroy, CPA, Mill Valley, CA