I live in Washington State (for the whole year) and have two rental income properties: one has net loss in Washington State and the other one has net income in California. I input both rental incomes for my Federal tax. Since Washington State does not have income tax, my next step is to file California State tax.
However, Turbo Tax automatically transfers my both rental incomes into California's filing and includes the Washington State property's net loss in the 'California Worksheets'. Should the Washington State property rental loss be excluded from 'California Worksheets' as its source income is not from California?
