Question

Sold NC rental but PA return not capturing Prior Yr losses. See credit fro NC tax payable but PA tax higher because not picking up Prior rental losses.

Forum|Forum|4 years ago
April 7, 2022
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NC return sees Prior Yr Losses for low Net Gain but PA not reducing gain so taxation much higher. Does PA not recognize rental losses in gain calc?

TurboTax Online

D

DianeW777

Correct. Pennsylvania (PA) does not recognize carryover losses. Each year any loss in one category of income is not allowed to offset a positive income in any other category of income. They recognize each category of income during each year and do not use carryover losses in any future year.