Yes, California allows passive loss carryover. You would enter the carryover in the rental section for example if these are related to rental property. Once entered the losses will transfer to the State.
The Forms to use depends on what generated the passive activity losses.
In general, in determining California taxable income, nonresidents compute prior year items by taking into account only those items with a California source, subject to any limitations provided by law. For example, passive losses are limited to passive gains (IRC Section 469 and R&TC Sections 18551 and 17561). Make this computation whether you were always a nonresident or a former resident who moved out of California.
Nonresident and Part-Year Resident Instructions
Nonresidents and part-year residents must complete form FTB 3801 and the worksheets twice:
- First, to determine the amounts to enter on Schedule CA (540NR), columns B and C.
- Second, to determine the amounts to enter on Schedule CA (540NR), column E.
For additional information please review the links below as well:
Passive Activity Loss Limitations
See how to enter Turbotax
Entering passive activity loss carryover
@Tax2019Pay
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