By property management loss, I suppose you meant PAL from rental properties.

Which state?  CA?

If it's one of those states that don't follow federal AGI, did you check whether it's because of state adjustments that put them above the threshold?

CA. This is being run as an active business, so the loss would not be under not PAL. That's why Federally they are accepting the loss into the calculation instead of blocking at 0. It could be CA is just not allowing that loss. Haven't checked into that yet, just instinctually that would feel like highway robbery. Hoping there is a box that I missed for CA that would classify as an active business activity. 

You can call it highway robbery but CA sets its own rules and does not always conform to the IRC.  §469(c)(7) is one of those.  I'm afraid ProConnect Tax is doing it right.