This issue appears to have been corrected. However, continue to monitor HI-144 Line i whenever you have ST or LT Capital Loss Carryforward on the federal return. And, remove any workarounds you may have created.
Summary. Line i on Vermont Sch HI-144 is incorrect under certain circumstances. This error was reported to TaxSlayer on Feb 9th and has been assigned Issue 2693. From the instructions for HI-144 Line i (in part): A capital loss carryforward cannot be used to offset a current year capital gain. Add back federal Form 1040, Schedule D, Lines 6 and 14 to Line 16. This cannot be less than zero (0). It appears that when the Capital Loss Carryforward (CLC, a positive number, entered in the Federal section) is greater than the sum of the CGs (excluding CLCs), the value on Line i is incorrect (in fact, it is the value of the CLC). If the CLC is less than the sum of the CGs, the calculation appears correct. Workaround. Vermont does not permit you to use a capital loss carryforward to offset your capital gain on the HI-144 Line i. Line i = Sum of (Sch D Lines 16 + 6 +14) [thus eliminating the capital loss carryforwards] Calculate the required Adjustment for TaxSlayer Adjustment = (TaxSlayer incorrect Line i) - (the correct value for Line i) Enter the Adjustment as a NEGATIVE number on the Homestead Decl... > HI > TP/Joint...Adj page in the field titled "Enter Capital Gain from the Sale of a Residence in Not Included on Federal Return." This should result in the correct value appearing on Line i (but VERIFY). Caveat. If you use the workaround, then add a Note to the return detailing the workaround, because when TaxSlayer fixes the problem, you will probably need to remove the workaround or your return will no longer be correct.
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