Question

Does California have income cap for rental loss deduction? where should I look for those calculation in California return?

Forum|Forum|5 years ago
February 21, 2021
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TurboTax Premier Online

California conforms to Federal amounts.

Step 1 — Figuring your California Passive Activity Income (Loss)

Use the California Passive Activity Worksheet on form FTB 3801, Side 2, to determine the current year California net income or net loss from each passive activity before application of the PAL rules. Enter information for each passive activity on the schedule separately. The amount to enter in column (d) of the schedule is on the federal form on which the activity is reported. If you need more space, attach additional sheets.

Example: You reported a rental loss on federal Schedule E. The amount of this loss before the application of the PAL rules is on federal Schedule E, line 21. Enter this amount in column (d) of the worksheet.

CA PAL

M

mmike0Author

Thanks to ColeenD3 for the information.

Looked into the forms in California return. You are right, CA follows federal rule on income limit of $150000 for rent loss deduction, and the loss will be added to carryout for future years.