Passive Loss Carryforwards California Return

Forum|Forum|1 year ago
February 2, 2025
2 replies
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When will Turbo Tax update their CA product so that my previously disallowed passive loss carryforwards show up? I have done my CA returns on Turbo Tax since the beginning of time and as such the program should show those in my 2024 tax return (which it does not). I pay way too much to Intuit for my annual tax programs to have to resort to manual entry of this information for each of my rental properties.

TurboTax Home & Biz Windows

AmyC

Please check forms availability here. The federal and state agencies work their way through the form updates starting with the most used. As they update, we implement the changes.

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chriscoltenAuthor

Thanks for the reply. According to the chart, CA form 3801 (Passive Activity Loss Limitations) is ready and supported. However my prior year losses are not showing up, even though the show as unallowed losses on last year’s return (which I filed using Turbo Tax).

chriscoltenAuthor

In addition to the passive loss carryforwards not showing up from previous years, the CA depreciation schedules do not show prior (only current) depreciation on assets that we put in to service 2-4 years ago. As there was depreciation on previous tax returns, this cumulative amount should show in the prior depreciation column, which it does not. The current depreciation appears to off (too high) as it is noted an DB, which means that the depreciation should decrease (not increase as it shows now) from the prior year. This leads me to believe that both the prior year and current year depreciation amounts for these assets (for rental properties) is incorrect.

The state of CA product appears to have several bugs in regards to rental properties, calculating depreciation on assets, and previous passive loss carryforwards.

Right now I have no confidence in this portion of the CA product and I will delayed in filing my return until it is fixed.

FileMyTaxesAI

For some reason I was not able to search for form 3801 in Chrome on my 2024 return, but was able to on 2023. Very odd. That led me to this post. After going page by page, it turns out TT Online at least for CA does include this.

May want to check this page by page or if you feel lucky you can have Gemini compare your pdf's, and tell you what things are missing or might be different between your 2023 and 2024 tax pdfs.