I have the same issue.
It even states you can print and mail it in to state with this issue. Just can't efile.
Turbo Tax can't seem to resolve.
Yes, you can have negative Schedule D on federal. Mine is due to a capital loss on K-1.
The issue is that it won't let you file electronically...but it keeps looping on the error and won't let you go past it in order to file by mail.
Did you ever solve?
