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.
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