Hello and thanks for joining us today!
When you say: "This sale took place after a conversion" do you mean the rental was converted into a personal residence?
If so, in the year that the property was converted, you would need to file the Form 4797, Disposition of Business Property, which includes the conversion to personal use. This closes out the Schedule E for reporting. When you sell the property, you will have to account for the depreciation to determine the gain or loss (essentially it is suspended).
When it comes to CA PAL limitations, here is the link with the instructions for the 3801 form: https://www.ftb.ca.gov/forms/2021/2021-3801-instructions.html#General-Instructions
However, this does sound like a complex issue, and we are not able to provide formulas/calculations over this forum. Please do feel free to contact us if you need further assistance, so that one of our experts can look into this.
