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New Member
posted Mar 5, 2025 12:09:01 PM

How do I adjust state passive loss carryovers? The Online CA Form 3801 is not showing the correct passive loss carryover from the prior year return.

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1 Replies
Expert Alumni
Mar 11, 2025 4:07:03 PM

What type of activity are the losses related to?  If Rentals, there's a question in that section of your Federal return for Carryover Loss that should populate from 2023. Look for a screen "Any Section 179, Passive or At-Risk Loss Carryovers?" in this section. 

 

Since California does not always follow Federal guidelines for reporting passive activity losses, in the California interview, look for a screen "Here's the income that California handles differently", select Business, then Business Profit or Loss Adjustment. Select the activity you need to adjust. The next screen will ask "Any Section 179, Passive or At-Risk Loss Carryovers?" If you answer "yes", TurboTax provides a screen where you can enter the needed California adjustments. 

 

@viking84