Passive loss carryovers are not reported on Schedule E. They are reported on the federal Form 8582 and on the California Form 3801.
To enter the information, do the following if you have passive loss carryovers for California:
- You should make sure that such amounts are entered in the TurboTax/California (TT/Calif) activity.
- Go to that activity (rental, k-1, etc.) and Edit it.
- You will be asked if you have any carryovers associated with that activity. Select Yes and you will then have the opportunity to enter them.
The amounts are usually transferred in from your prior year TT/Calif return, but you must enter them if using TurboTax for the first time.
For @Cat_Sushi, California has different rules for some items affecting rentals, such as depreciation. TurboTax will carry the Federal adjusted gross income to the California return, but you should review the rental in the California return and answer the questions and review the passive and at-risk carryovers. If you depreciated the rental in 2022 using TurboTax, the figures should carry over to 2023.
For @aka51, yes, check both the passive activity loss box and the at-risk box if both apply.
See IRS Publication 925 for details on both Passive Activity and At-Risk rules.
See here for the California Passive Activity Loss Limitations and here for the California depreciation rules.
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