I bought a rental house in 2016 and got special depreciation of 34K and regular depreciation of 9K for 2017. On my Schedule E, when adding the 43K to other expenses and subtracting from rents, I incurred a 70K loss. But Turbo Tax (Or the IRS I guess) limited my loss to 12K. I am now selling the property in 2018 and I am required to claim that 43K of depreciation on CA form 593-E. How can CA make me claim 43K of depreciation when I was limited last year to only 12K of losses (I.E., a lot of the 43K of depreciation wasn't counted.) PLUS I was not allowed to carry the difference forward?
