I live in California and sold a property with suspended passive activity losses. I have to figure the difference between the California PAL allowed and the one from 8582. I also have to do that again with AMT rules. All the instructions seem to say I have to figure the California PAL but they don't seem to say what different rules apply so that I can adjust the amount for California.
This sale took place after a conversion so there is no current year rents or revenue. All of Schedule E is just the suspended prior year losses.
FTB 3801, mostly down column (e), is the part that I am expected to calculate but for which I have no formula.
For CA AMT version of the PAL, I am supposed to do FTB 3801 again but apply the CA AMT rules. Again, I cannot find CA AMT rules as they apply to rental PALS deductible upon sale.
Most of what I have found is for current year losses and offsetting income but that does not apply here.
TurboTax is not giving me anything. It adjusts the entire PAL away to nothing, perhaps because it cannot see all the history of deductions that created the losses over the past 25 years. I would prefer to know what the formula is, rather than how to coerce TurboTax to keep trying. Thanks.
