Hi @makaminski have you resolved this? I have the same problem with my CA 2020 return. I am using TT Home and Business as I have a rental and a K-1. The following is the full rejection code and the message.
F3801-020 - Please review your rental and/or royalty income. Note that some rent and/or royalty income or losses are first entered and then calculated on the Federal side. You may or may not need to make California adjustments.
I tried adjustments in K-1 file and also tried not applying the adjustments. I also tried applying & not-applying the passive loss carry over adjustment. Whatever I tried, I get the same error message and can't get CA to accept my return.
