Massachusetts rental real estate loss for out of state residents

Forum|Forum|2 years ago
February 29, 2024
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I have Massachusetts property rental real estate loss that cannot be deducted in MA because I don't reside in MA I don't have any other MA income to offset. This MA property loss was used on Federal tax return to offset other income. Can this loss be carried forward to the next MA return and used against the next Massachusetts real estate income? Or can this loss be carried forward in MA taxes for when I sell the property? Or do I lose the loss because it doesn't reconcile with Federal?

LMRJAuthor

Any experts out there?

ThomasM125

The passive loss carryover in Massachusetts would appear to be allowable as Massachusetts conforms to federal tax law as it pertains to passive losses. From The Massachusetts Department of Revenue: Mass.gov

So, if you don't have passive income in Massachusetts to offset passive loss carryovers from the previous year, the loss carryovers would continue on to the next year until you had a year that they could be used. That is the federal law so it should be the same in Massachusetts.

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