My question is non passive Rental losses:

I apportioned the interest and dividends between California and Texas that were received before and after March 1.

He had business income in California of $462,000

He had non passive rental losses from Illinois (Real Estate Professional with material participation) of ($435,000) from 2 Illinois K-1. In Lacerte I want to claim the losses For California to offset his income and I want to file Illinois returns so that I can use the losses against  eventual sales of the rental property.

To get an Illinois return I sourced the rental loss to Illinois but  then Lacerte adds back the losses to  California income.

I know California taxes worldwide income, so I assume they would allow losses from other states, but I can't record the losses on both the California return and Illinois return.

Does California Allow losses that are sourced to another state ?  They sure would tax the income. I have not found the trick to do this in Lacerte.