Non Resident of CA, NOL Question

[Kram BergGold]

In 2014 client has $100,000 of income. She also has a $20,000 loss from a rental property in CA. So AGI is $80,000.
The $20,000 loss is her only CA income. Does she have a CA NOL?

[Y2KEA]

Check to see if the 540NR package contains the 3805V NOL form.

[Roland Slugg]

Does she have a CA NOL?

No. She does, however, have a PAL carryover of $20,000. She should file a CA tax return, form 540-NR, in order to establish the PAL for the record and track it (on CA form 3801). That suspended PAL will eventually be released and become usable when: (1) she has passive activity income from that property or another activity in California, or (2) when she sells that rental property in a taxable transaction.