All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

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Pioneer
Posts: 1
Registered: ‎02-10-2016

Rental Property in Different State

I am claiming a rental property and income that is from a different state. I live in FL where there is not state tax and the rental property is in SC where there is. I filled out all of the information for the rental property on the Federal side of my return and after I did all of the deductions on the software it is reporting a loss of over $2000 (it told me this when I went to fill out the SC state portion). Do I need to file a state return for South Carolina and if so, when I began filling in the information on the software it asked what the income/loss was for this property. Do I just enter the amount from the Federal Return showing a -$2000 or do I input the acutal entire year's income and go through the whole deductions process on the State side too. I didn't see an option for that when I was filling out the information in the Software. I have H&R Block 2015 Premium Software. 

 

Thanks!

Trusted Council Member
Posts: 6,191
Registered: ‎02-23-2016

Re: Rental Property in Different State

JCFowler777,

 

Welcome to the community.

 

Since you are a non-resident of South Carolina you only need to include income and losses from South Carolina sources.

 

You will need to file a South Carolina tax return.  Rental losses are generally passive and can be carried forward and deducted against passive income in the next year.

 

I hope this helps you out & please ask if you have any other questions.

 

Louis,

Tax Advisor (Tampa, FL)

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Esteemed Pioneer
Posts: 11
Registered: ‎12-16-2015

Re: Rental Property in Different State

I have a similar question to this thread. I am a resident of Washington State and have a rental property in North Carolina. I complete a Federal Return and a NC return because I have only the rental property in NC. Rent does not cover expenses so there is a loss. Last year the loss on the property carried over as a Passive Loss but this year it is not carrying over the full amount of the losses. I don't know where it's calculating that from. The loss last year was -$18k and the full amount of that loss showed up as my only NC income. This year the loss is  -$22k but only -$3k is showing up as my NC income.

 

Is there a yearly passive loss amount or does it max out?

 

I thought the loss form last year would be carried over as the "loss from prior year" and then the loss from the rental this year would be an additional $22k. Does the rental loss accumulate year after year? Should the NC income be -$22k?

 

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