Oregon tracks unallowed passive activity losses (PALs) for nonresidents through the Oregon Nonresident Income Tax Return (Form OR-40-N) by following federal passive loss rules. Although Oregon does not have a separate state-specific Form 8582, you must track these losses by filing a non-resident return annually, which records the suspended loss in the Oregon column.
On your Form OR-40-N, the "Oregon Source Income" column should show the suspended loss. You are essentially using the tax return itself to track the loss.
In TurboTax, you must make an adjustment in the state depreciation to record the proper loss. During the Oregon state interview, TurboTax should prompt you for "Oregon-specific" adjustments.
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