CORRECTED ANSWER
As a New Jersey resident you have to report all of your income on your New Jersey tax return, no matter where the income is from. TurboTax is doing it correctly.
If you have a net loss from all all of your rentals combined, it will show as zero or blank on your NJ-1040. You cannot claim a net loss in an income category on the New Jersey return. But you still have to list the profit or loss from each individual rental property.
You might have misunderstood what the CPA said, particularly with regard to losses. Otherwise, you need to consult a different tax professional. Not all CPAs are tax experts.
