Non Resident New York Rental Property Loss

Forum|Forum|1 year ago
January 23, 2025
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I live in California but own a rental property in New York. The rental property in NY shows a net loss for the year. Do I have to file NY state taxes with a net loss? Would it be beneficial to show that loss to the state?

Not A Product Question

mglauner

Yes, it could be beneficial to file a New York State return to report your loss on Rental Property you own there.

In a future year, you may have taxable income on your rental, and you can carryover your losses from year to year.

Also, you can report the loss against any Capital Gains when you sell the property.

You will still need to include your rental activities (income or loss) on your federal and resident state tax returns.

Here's more info on How to File a Non-Resident State Return, although you could just mail in a paper return from forms off the NY website.

nj30

@mglauner same situation. I tried to complete the NY non-resident form on TurboTax and I did not see any questions regarding the rental property or the loss from it. The income from federal transfered over but it shows up as zero and I also allocated zero to NYS as it is a loss. Is there anything else that I'm supposed to do? doesnt seem like that would be capturing the depreciation of the loss carryover either.

mglauner

If you entered your carryover loss in the Property Profile section of Rentals on your Federal return, it would be included in Schedule E calculations, on Line 22. Since the loss is included in the Federal AGI that carries over to New York, you don't need to make an adjustment for rental income in NY as a non-resident, as you mentioned.

Because TurboTax will include Schedule E in your NY Efile, they will have the info regarding the carryover loss amount each year.

@nj30