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aywkwok
Returning Member

California Schedule E worksheet, where do I record the last years passive losses carryover?

I have exactly the same problem for TT2023. It did not import prior year (2022) unallowed losses to CA 3801. However do I fix this problem?

MonikaK1
Expert Alumni

California Schedule E worksheet, where do I record the last years passive losses carryover?

It depends on why the information doesn't appear on CA Form 3801. Federal Form 8582 information should flow through to the California return automatically unless some of the losses were calculated differently due to differences between Federal and California law, or if you are a nonresident of California.

 

Please see the California Instructions for Form FTB 3801, Passive Activity Loss Limitations, for information on the areas where California law differs from Federal law.

 

California has different rules for some items affecting rentals, such as depreciation. TurboTax will carry the Federal adjusted gross income to the California return, but you should review the rental in the California return and answer the questions and review the passive and at-risk carryovers. If you depreciated the rental in 2023 using TurboTax, the figures should carry over to 2024. 

 

California does not have forms or schedules comparable to federal Schedules C, E, or F. Each passive activity that has no comparable California form or schedule should be listed on the California Adjustment Worksheet corresponding to the federal schedule where it was reported.

Be sure to go through all of the screens in the California interview to identify all areas that need adjustment due to differences with Federal law.

 

See also this discussion on the topic.

 

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