Possible error in allowed losses offseting regular income -Turbo Tax Premire - Max OS

[AmeliesUncle]

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@dolphine1234 wrote:

If I have two rental properties A and B and I sell A only for a gain, the unallowed passive losses from both properties A and B will be released.  

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There are actually two separate things going on.  Technically, only the unallowed passive losses from Property A are "released".  However, the gain from the sale results in passive income, which can be offset by unallowed passive losses, such as from Property B.

[dolphine1234]

Thanks for the help so far.  The passive loss is allowed for federal tax but Turbo tax doesn't allow the passive loss to be released for CA state. The passive loss is removed (disallowed) from the taxable income for CA. Is this correct?

[dolphine1234]

Nvm. Somehow Turbotax didn't import last year's disallowed passive loss carryover to the CA state tax. I had to manually add the passive loss carryover from last year (2022).