You live in CA and own an SFR rental property in OK, reported on your 1040 Schedule E.
After all income and expenses, depreciation, etc., the SFR has a net $1,000 positive [passive] profit for the year.
Its Schedule E carries forward a -$1,500 [passive] loss from previous year due to big repairs. This effectively cancels the $1,000 passive profit and you owe no tax on it.
TT recognizes the situation, and creates a Schedule S. Then it asks you "how much of your RE income is from OK", apparently to avoid double taxation.
Question: do you enter the actual OK passive income ($1,000), or do you enter $0 since that income is effectively not taxable due to loss carryovers?
