Passive losses are claimed on the federal return and by default are included in the GA return because GA starts with the Federal AGI. The add-backs on GA don't include passive losses but do include differences in depreciation and Federal Net Operating Losses. The reason for this is that Georgia doesn't conform on many depreciation standards (think Section 179 and bonus depreciation) and the way Georgia determines the Net Operating Loss is slightly different than the federal calculations so you can have a federal loss but not a Georgia loss and vice versa.