I have a sizable passive loss on the rental property from prior years (mostly due to depreciation). My understanding is that passive loss can offset the capital gains on the rental property sale. And when I enter everything in TurboTax, that works on Federal. BUT the CA 540 adjustments seems to reject that passive loss resulting in much higher taxes than expected.
Am I misunderstanding the CA laws? Or just mis-entering something in TurboTax?
Thanks in advance