California Schedule IW Incorrectly including non-California gross rents

The Lacerte tax program for a partnership return is not correctly calculating the 8a of California Schedule IW.  Line 8a is being automatically computed using total Gross Rents reported for federal purposes but this line should only include gross rents from California sources. Here is a snippet from the instructions for Schedule IW:

Use only amounts that are from sources derived from or attributable to California when completing lines 1-17 of this worksheet.

Using federal gross rents overstates California source gross income and results in an incorrect LLC Fee being computed.   If the override is used in Screen 43 on the line “Gross rents from Federal Form 8825” a diagnostic is generated saying a paper return is required to be filed.  This seems to be a programming error that could be fixed so that LLC Fees are not overstated and paper returns are not required to be filed.  (A current fix on the Lacerte site recommends adjusting state income if different on Screen 22 but this incorrectly changes state taxable income which is different from reporting of gross California income on Schedule IW)

The Lacerte input screen for Rental Real Estate (Form 8825) has state coding on the Gross rents input line.  Why is the Lacerte program not picking up just the California coded Gross rents and carrying that to Schedule IW?  Note that even the description in Screen 43 of “Gross rents from Federal Form 8825” is not correct.  The description should be “California Gross rents from Federal Form 8825”.