My loss on rental income is not reported in PA income tax - PA schedule E

Forum|Forum|6 years ago
June 4, 2019
2 replies
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In PA schedule E form. total Rent on line 1 is $9350. Total Expenses on line 18 is $15296. But line 20 reported as $0. No rental income loss has been reported in PA Schedule E. I used online turbo tax - Self Employed product.

TurboTax Self Employed Online

2014single

I had a similar situation. According to Turbo Tax, PA does not allow a rental loss claim when you use schedule E; only for schedule C which is used by real estate agents. On my return the loss was listed on line 6 but not deducted.

catance

However, if you read through the Schedule E instructions it says nothing of the sort. You're supposed to add all the profits and losses together to get a total profit or loss. There's nothing about disallowing losses. In another post somebody commented that TurboTax's result contradicts the state's own online software for Schedule E. I am suspecting this is a significant screw-up by Intuit, unless somebody can point to specifics in the tax code saying otherwise.

DianeW777

Pennsylvania (PA) tax law specifically states the following:

A loss in one category of income cannot offset the gain in another category of income.
- Example: Rental loss cannot offset wages, interest, dividends, self employment, or any other type of income. Likewise a business loss (Schedule C) cannot offset rental income, wages, interest, dividends or any other income class. Losses can be used to offset income only in the same class of income,
Likewise, there are no carryover losses allowed on the PA return.
- PA Income Tax Rules for Offsetting Losses Against Gains
@catance

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dpfromva

Pennsylvania does not provide for carry over of unused losses as noted previously. I am a non resident who only has rental loss in PA; therefore I manually file with the loss calculated. Tax laws can change, and I prefer to have the loss recorded by the state.