I am a TX resident with CA rental property with a loss, should CA(540NR) Part II section B line 5 Column E be ZERO?

[nomad]

I am a TX resident with CA rental property generating loss for 2021. I filed my tax using turbotax desktop version for 2021. I added  CA state as non resident and my inputs from federal return passed over to CA state return. The CA(540NR) Part II section B line 5 Column E is ZERO.  That column title is "CA Amounts (income earned or received as a CA resident and income earned or received from CA sources as a nonresident)".

The column A on the same line has -35,366, the title of that column is 'Federal Amounts (taxable amounts from your federal tax return).

An EA looked at my CA state return and says that my CA(540NR) is incorrect. In the Part II section B line 5 Column E , should not be zero. It should have the CA state rental income instead. If its a loss it should be the negative number. Is he correct ?  If he is, why did turbotax put a Zero there? who can I contact at Turbotax to get clarity on this?

[JotikaT2]

When you prepared your nonresident California return, the program asked you to allocate the income or loss from your federal return to each state return that is prepared.  

In your situation, when proceeding through the California interview program, there is a screen that says "Here's the income that California handles differently."  On this screen, you would need to scroll down to the section titled Business.  Under the subtitle Rental or Royalty Adjustment, you would select revisit and make any adjustments to ensure the entire amount of income or loss is allocated to California.

To correct this, you should prepare an amended return for 2021.  Please see this link for guidance.

[nomad]

Jotika52, Thank you for your response.

Is this the right place to modify it? See screenshot below. The CA amount was 0 before, I changed it to '-5256'.  TT could've transferred this to CA state from federal, since I have entered it there as a rental property located in CA.

[JotikaT2]

That would be the correct area to make the adjustment.  Please see this example from FTB Publication 1100 which breaks out how nonresidents are taxed as well.