Yes... I located a CPA (actually several mentioned it) who explained to me that there's case law in NJ (one is called Koch the other is Moroney, which is based on Koch - you can search for these) that allows you to write off the unused depreciation (but not any other remaining losses - which you'll have to carry). TurboTax Online WILL NOT handle it. I've escalated, they researched it, and basically said that unless it's in the filing instructions, they do not take case laws into account like this. TurboTax Online can't be used to file it.
However, the Desktop version can be used to edit the appropriate form. The software won't automatically do it, so you have to edit it manually. I was instructed to add a line item in NJ-DOP form listing the unused depreciation with a description (I used: Koch/Moroney Treatment of Unused Depr.) You should make sure you have all the previous returns to determine the depreciation. You'll also have to fix up the NJ-BUS form to fix the carryover of the remaining losses.
