When filing a resident return for the state you live in and a non-resident return for another state's income, be sure and do the federal return and then the non-resident state return first. Then do the resident state return.
In the non-resident state interview, it will ask you about income based on the federal tax return. The rental loss/gain comes from the federal return, Schedule E, Supplemental Income and Loss and is reported on Line 17 of your Form 1040. The interview asks what portion of all reported income belongs to the non-resident state.
After answering the interview questions for the non-resident return, (in your case Hawaii), you can start your resident return. In the resident return the interview will ask questions about income which is taxed by both states.
If your resident state (CA in your case) has a credit for taxes paid to another state, Turbo Tax will ask you questions in the resident state to calculate the credit allowed for taxes paid to the non-resident state. In your case, if you pay no income taxes to the non-resident state, there will be no credit on the resident return.
