The Calif tax is a cost of doing business.
If you were in a state that had an income tax, you would have been able to receive a credit for taxes paid to other states to avoid being taxed on the income twice.
However, since Nevada does not have a state income tax, you aren't being taxed on that income twice and as a result, no credit, no deduction on Sch E.
As noted, you might be able to deduct on Sch A if you itemize.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
