I can't determine where TT is picking up all the income to determine I owe CA about $335K when my CA income for 2016 was only $7K. The $200K I made on sale of our Virginia home should not be used to calculate CA taxes.
It sounds like you haven't allocated your income properly to Calif. Here's how it works in TT/Calif:
The Calif nonresident/part-year return, Form 540NR, computes your income and tax as if you were a resident the entire year, then computes a net tax rate by dividing the total tax by total taxable income. Your California-source taxable income is then multiplied by that net tax rate to determine your California tax. You can see this on Form 540NR lines 31-37.
So you do report everything but towards the end of the interview (Nonresident Adjustments) is where you allocate the California-source income which is multiplied by the net tax rate. See Form 540NR, lines 31 - 42 and Schedule CA(540NR). So for each federal income item on the left, be sure to enter only the Calif-source portion of that total: 1) all received while living in Calif, plus 2) income from a Calif-source (rental property there; property gain/loss located there; etc) while a nonresident, etc. If none, enter 0.