California VS Federal Adjusted Profit or Loss From Rents

Forum|Forum|1 year ago
April 6, 2025
1 reply
0 views

I have a rental property in California, and in 2024 I moved from California to New York. When filling out my CA state return, it asks me to enter the California amount for "Profit or Loss From Rents, Royalties, Partnerships, etc" next to the federal amount, which shows "$0".

I have 2 questions here:
1) Even though in the "Wages & Income" section I entered a loss on my rental of -$20K, the federal amount shows as $0. Is this because my MAGI is above $150,000?
2) Should I also be entering $0 as the California amount here? Or should I enter the actual loss I previously entered in the "Wages & Income" section, which is -$20K?

TurboTax Premier Online

DianeW777

Yes, you show zero if you have reached the income threshold for passive losses. Based on the information for California (CA) you should enter the amount of your loss calculated on the federal return. CA follows the conformity to federal when it comes to passive losses. TurboTax should follow through for the correct calculations on CA.

Form FTB 3801 is filed by individuals, estates, trusts, and S corporations that have losses (including prior year unallowed losses) from passive activities. Additional information for nonresidents, part-year residents, and S corporations is provided below.

Exception. You do not have to file form FTB 3801 if you meet both of the following conditions:

You have a net loss from rental real estate activities that is fully deductible under the special allowance for rental real estate.
You have no other passive activities.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"