CA rental property - do I need to manually "enter passive and at-risk loss carryovers" screen?

[Cat_Sushi]

I rented out our vacation home most of 2023. However we had loss due to depreciation, let's say $50K.

While finalizing, I looked through the CA state return sections and saw section on "Rental and Royalty Summary"

Is there a reason why TurboTax does not automatically move the numbers over for me? Do I not need to fill this out due to some income limit? If I am to fill it out, I assume I have to print out the federal form and try to dig up "passive loss carryovers" for schedule E, D (Long/short/ordinary etc).

Then next screen asks if I had "expenses from prior years" of operating and depreciation expenses. Which I do, but it doesn't say 2022 as I would assume prior tax year, or just prior year, which would be 2023. It's all very confusing. If someone can advise. My federal ones all seems to be accurate. Just wondering if I need to fill out this section in CA. Don't want to have to amend my taxes in the future for CA if we ever sell the property and have to recapture the loss. 

[aka51]

At federal income and wages, when reporting your rental income, do you select both checkboxes?

1. "I have passive activity real estate loss carried over from a prior year"

2. "I have at-risk losses carried over from 2022"

[MonikaK1]

Passive loss carryovers are not reported on Schedule E.  They are reported on the federal Form 8582 and on the California Form 3801.

To enter the information, do the following if you have passive loss carryovers for California:

• You should make sure that such amounts are entered in the TurboTax/California (TT/Calif) activity.
• Go to that activity (rental, k-1, etc.) and Edit it.
• You will be asked if you have any carryovers associated with that activity. Select Yes and you will then have the opportunity to enter them.

The amounts are usually transferred in from your prior year TT/Calif return, but you must enter them if using TurboTax for the first time.

For @Cat_Sushi, 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 2022 using TurboTax, the figures should carry over to 2023.

For @aka51, yes, check both the passive activity loss box and the at-risk box if both apply. 

See IRS Publication 925 for details on both Passive Activity and At-Risk rules.

See here for the California Passive Activity Loss Limitations and here for the California depreciation rules.