Question

State Rental Expenses Exceeds income amount

Forum|Forum|2 years ago
April 14, 2024
1 reply
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Lived in Florida home as primary residence Jan - Sep 2023. Moved to Wisconsin Oct 2023. Rented Florida home Oct 2023. I received rental income from the tenants prior to becoming a Wisconsin resident (Sept 2023).

With expenses and assets deducted I have a ~$4000 rental income for Federal. Part of this income was 2 months' worth of rent (~$5000) which is greater than ~$4000 and occurred when I was not a Wisconsin Resident. Is the full ~4000 non-Wisconsin income? Or is it more? ~$4000 - ~$5000?

Thank You

M

Mike9241

rent received prior to becoming a resident is not Wisconsin income. Expenses incurred before becoming a resident are not Wisconsin expenses

D

ddubs82Author

@Mike9241 This is clear. What I am asking is what to do if my expenses are more than income specifically for Wisconsin? Am I able to carry this over? Or am I better off changing the way my assets are depreciated so less is depreciated this year, increasing my federal taxable income amount but maximizing my state income to expense / asset amount?

D

ddubs82Author

Are these considered passive activity losses that I can carry forward? Will TurboTax automatically do this or is there a specific field / form I need to fill out in 2023? In 2024?

Specifically for the state of Wisconsin.

https://www.revenue.wi.gov/Pages/FAQS/ise-passive.aspx#:~:text=A%20passive%20activity%20loss%20for,income%20for%20the%20taxable%20year.