I'm a California non-resident who owns California rental properties.
When TurboTax generates California form 3801 ("Passive Activity Loss Limitations"), it automatically pulls in my non-California properties, and my non-California properties' loss is used to offset California's properties' income, which I feel is wrong.
From FTB website: https://www.ftb.ca.gov/forms/2021/2021-3801-instructions.html, "In determining California taxable income, nonresidents compute prior year items by taking into account only those items with a California source".
I think non-California source properties should be taken out from CA-3801's calculation. However, I couldn't find any way to remove the non-California properties from CA 3801 form. I tried to delete the out-of-state properties in CA 3801 worksheets in "forms" view. However, TurboTax automatically adds back the worksheet before filing.
Is there anyway to exclude non-California properties in CA 3801 calculation?
