Manually enter section 179 / passive loss carryover from 2024 for 2025 California State return

Forum|Forum|3 months ago
March 27, 2026
1 reply
316 views

Hello Everyone,

I am in the process prepare my 2025 tax return for State of California.

I have completed Federal tax return using TurboTax software.

Software: TurboTax Premier 2025 desktop edition

Filing status: married file jointly.

2024 tax return prepared by accountant. (I only have PDF file)

We have two rental properties: one single family house, one townhouse. Both properties located in CA.

We reside in Texas.

I have following questions:

1. How do I know if I have unallowed section 179 deduction from prior year?

One prompt showed as Schedule E section 179 Carryover amount that was not allowed in 2024.

Software suggested to check form 3885A ( I don't have this form for 2024).

I left the box as blank.

my previous posts regarding enter passive loss amount for Federal tax return:

My previous post for how to calculate depreciation on assets:

Schedule E (2024) has following data

line 21 (single family house): $14,356

line 21 (townhouse): -$5,542

line 22 deductible rental estate loss after limitation (single family house): ( $14,356)

line 22 deductible rental estate loss after limitation (townhouse): (blank)

2. How do I determine passive loss carryover from prior year?

I referenced form 8582 (2024) Part VII Column (c) Unallowed loss section

Single family house: $3,505

Townhouse: $24,957

I entered these two amounts on the prompt ask for "Enter passive and At-Risk Loss Carryover"

Please review my questions and let me know if my entry for these two interview questions is correct or not.

Thanks!

yosemite798Author

Level 3

Hello everyone,

for my question 1, I was able to see all the asset depreciation data for single family house and town house got transferred into form 3885 A (2025). I conclusion is there is no unallowed section 179 depreciation from 2024 for both rental properties. please let me know this is correct.

2. for question 2, TurboTax software was able to record my data entry ( -$3,505, -$24,957) onto form 3801 worksheet. Please advise I entry is correct for CA state tax return.

MarilynG

Level 15

Yes, if TurboTax did not populate your California Carryover Loss from 2024 on Form 3801, Line 1c, you can enter your calculated loss manually. Carryover amounts should also show on your 2024 Schedule E Worksheet, in 'Carryovers to 2025 Smart Worksheet'.

Here's more info Carryovers for CA Rental Property.

@yosemite798

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