You report the losses for the days you are a California resident on California return. You report the losses for the whole year on Arizona return. Yes, you report losses during the time you are a California resident on both returns.
The allocation is about how many days you were a California resident. Because the property sits in Arizona, you report the losses for the whole year around in your Arizona return.
Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or tax advice.
