Claiming expenses for rental property on state tax forms

Forum|Forum|1 year ago
February 10, 2025
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Can I claim expenses on the NC State tax form for my rental property, and where do I enter this information? I am using Turbotax Premium.

I have a rental property in NC. I am a non-resident and the rental property is my only NC income. How do I claim expenses for this property on the state income tax form to deduct from the rental income. On my federal return, it is showing as a loss.

AnnetteB6

All of your rental income and expenses will be claimed on your Federal tax return.

Then, take a look at the Schedule E included as part of your Federal return. If you only have the single rental property, its information will be reported in column A on the Schedule E. Line 21 under the column for your rental property will show whether it was a loss or a gain for the year. That is the number that should be reported on your NC return because it already takes into account all of the expenses related to the property.

Since you are filing a non-resident return for NC, there will be an allocation page that will allow you to enter the total income or loss from your rental property located in NC.

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jcolossale

So if the rental property operated at a loss, do you put zero?

TurboTax doesn’t allow me to enter negative numbers, even though it says my federal was in the negative.

Or do I enter the net income from my federal which is not negative/at a loss?

Or is it the gross rent I collected?

DianeW777

It depends. North Carolina (NC) doesn't allow the loss since it's the only income carrying over from the federal return. The passive loss gets carried over until you have passive income, or you dispose of the property. The non-resident state return would show net income, of which there is none. On Line 11 of Sch PN, the zero amount is carried over from the federal return.

If total gross income from all sources both inside and outside of North Carolina equals or exceeds the amount in the Filing Requirements Chart for your filing status, you must file a 2024 North Carolina individual income tax return, Form D-400.

@jcolossale

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