I have a question regarding the flow of an unallowed passive loss and how Drake software is handling on the CA side. Taxpayer resides in CA and owned farm property that is rented out in TX in which there was a loss in 2013. Loss was unallowed and carried forward to next year due to income. The Drake software is adding the loss to income for the state return for CA. For example, the loss was $6000 for federal but not reflected in calculating tax liability due to income. CA is adding $6000 to income even though the $6000 is not lowering the federal. I see this as an error; am I missing something? I also use Lacerte software and I mirrored the return for Lacerte and Lacerte did not handle in the same manner.
Peggy Sioux
Peggy Sioux