I am a resident in CA and am filing nonresident in AZ for rental properties owned in AZ. On the AZ nonresident tax return in 2016 (being the first year filing in AZ), we had passive losses from these rental properties. So we did not pay any AZ taxes. Do these passive losses carryforward to 2017 tax return (similar to Federal/CA) except that it only bases on AZ sources? Does the allowed and unallowed loss to each property in 2017 calculate similarly to the Federal/CA calculation? There was not any passive loss carryforward schedule from my 2016 AZ nonresident return. Please advise. Thanks.
