Question

K1 in California Owns Property in Colorado

Forum|Forum|6 years ago
August 20, 2019
1 reply
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Hi,

I've invested in property in Colorado through a California LLC. The LLC had me fill out a Colorado Nonresident Partner or Shareholder Agreement, DR-0107, stating I'd pay any taxes due.

The K1 for 2018 shows a loss in box 2 of Form 1065. Do I still have to file a Colorado tax return stating I don't owe any tax?

Multiple States

A

Anonymous_

Employee

@caligal2019 wrote:
The K1 for 2018 shows a loss in box 2 of Form 1065. Do I still have to file a Colorado tax return stating I don't owe any tax?

You probably should file a return because it appears that Colorado allows passive loss carryovers for nonresidents. Those carryover losses could be used in a future year or years to offset any gain you may have to report on a Colorado income tax return.

The thread below may be a a few years old, but the information is still relevant.

See https://ttlc.intuit.com/community/state-taxes/discussion/does-the-state-of-co-allow-passive-loss-carryover/00/156472