Thank you for posting this.  We are in a very similar situation.  We moved from CA to TX in October 2018.  The sale of our CA house closed escrow that same month, leaving us with a large capital gains bill (greater than the $500k exemption).

TurboTax kept prorating our carryover loss based on the date we last lived in CA.  Like the OP, Entry #1 was set to our total carryover loss by TurboTax.  Entry #2 was defaulted to zero.

The amount of the carryover loss from 2017 came from the sale of a house (located in CA) my wife and her siblings inherited years ago and ended up selling for a loss a few years back.

Once I entered the full amount of the carryover loss into Entry #2, the entire carryover loss was applied to the capital gains for the CA part-year return as the sum of two prorated calculations.  Is this correct?

#2 isn't "defaulted" - every user has to enter that since TT/Calif has no way of knowing how to allocate that. I think that's computed on the "Calif Schedule D Worksheet for Nonresidents and Part-Year Residents" based on your entries there (since you are Calif part-year residents for 2018). It sounds like your total capital gains/losses/carryovers are Calif source. If so, then the "Calif-source" capital gain/loss in line 13, Column E of Schedule CA (540NR) should be the same as Column D, Total amounts.

It sounds like your total capital gains/losses/carryovers are Calif source.

- They are, for the carryover losses remaining after 2017

If so, then the "Calif-source" capital gain/loss in line 13, Column E of Schedule CA (540NR) should be the same as Column D, Total amounts.

- They are, provided I set Entry #2 (CA Nonresident for All Prior Years) above to be the same as Entry #1 (CA Resident for All Prior Years)