DaveF1006
Expert Alumni

State tax filing

Yes, go to step by step in your return and go to your state tab, edit California. Then navigate to a page that says "Here is the income California handles Differently". Now go to Business>Rental or Royalty Adjustment. Now select edit to the properties that are out of state. First screen asks if there are any Passive or At Risk loss Carryovers.

 

If there is an amount in the next screen that is recorded with a negative number remove it. if there is no entry, you might try putting a positive number to negate the loss reported on the 3801 or some other manipulation to get this out of Form 3801. You may even try placing a zero in the box.

 

Let us know if this works and enjoy the rest of your year.

 

 

 

 

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