Out of State Investor (Indiana) question on filing

[Chris Maudlin]

Hey BP, I live in CA full time and have a rental property in Fort Wayne, Indiana. 

I am working on completing my first year of tax filings and am a bit stumped.

I ended up with a net loss on the property however I am not able to take the loss on my federal return. 

When completing the Indiana return I am being advised that I need to enter my "rents" as income which does not make sense to me considering I have a net loss.  

My thought would be to enter a $0 for income and then in the "Indiana Net Operating Loss Deduction" enter the full NOL. 

Does this sound correct or am I unable to list the full amount of my losss since I am not able to take it on the Federal return and it is more then the capital gains loss I am showing on the federal return? 

My thought here again was to file the State return showing the loss this year so in future years when i have a profit I am able to utilize the prior losses. 

Thanks in advance for any help!