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drlin
Returning Member

did not enter passive loss carryover in past California tax returns

In doing my 2024 California tax return, I realized that the passive loss carry over from rental property was not automatically put in by turbo tax from my federal tax return.  I then realized that my past CA returns were incorrect because of this.  When I entered the accumulated amount ($119,000) in Form 3801 for tax year 2024, it then showed as a huge business loss for this year with a large tax refund.  Should I go back and amend past CA returns or just keep it as is for 2024 return.

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DavidD66
Expert Alumni

did not enter passive loss carryover in past California tax returns

I would go back and amend prior years.  If you did not report an unallowed passive loss on your California returns the past few years, it may be disallowed on your 2024 return.  

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