Hi, I have a rental property in AZ (not my home state). When I do my Federal return, I got a profit after using rent income deducting expenses and depreciation. However, once I get to work on AZ state tax return, Turbotax gives me a screen stating: "We don't see a deduction for depreciation on your federal return.", then it proceeds to ask me " Do you want to enter Arizona-only depreciation?". I'm confused: I did depreciation on my federal return, and the rental income carried over to AZ state return is the rental profit after deducting expenses and depreciation. What do I do now? Any help is greatly appreciated!!
