NYS IT-182 NON RESIDENT

Forum|Forum|2 years ago
January 15, 2024
2 replies
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Does TT properly calculate PAL from NY rental real estate for non-resident on form IT-182?

Specifically, the form instructions for PART II -Special Allowance for Rental Real Estate Activities With Active Participation- to use NY AGI (not FEDERAL) to calculate the passive activity loss (PAL)

I have seen limitations on other software on this item.

tia

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TO SAVE YOU FROM READING THE WHOLE THREAD - TT does not calculate this properly. Final post on this topic from TT says "state passive activity loss calculations are not supported in the product. "

mglauner

New York State Tax Law conforms to the passive activity loss rules for federal purposes. However, any deduction for a passive activity loss (PAL) for a nonresident or part-year resident must be recomputed to determine the amount that is allowed if the federal adjusted gross income took into account only items of income, gain, loss, or deduction derived from or connected with New York sources.

It is possible, because of the above rules, for a nonresident to have a PAL for New York State without having a PAL for federal purposes, or to have a New York State PAL that is larger or smaller than the corresponding federal PAL.

In Part II, Line 6, enter your Federal modified adjusted gross income using only those amounts derived from or connected with New York sources.

Here's more detailed information and instructions from the New York Dept. of Taxation to help you.

jnoelleAuthor

I am familiar with the IT-182 form instructions for non residents. My questions is specifically regarding the TT software behavior.

**Does TurboTax has the ability (eg fields/calculations) to determine the amount in the software for a NY non resident whose only NY income is real estate NOL

**if it can not determine the amount, is there a place to enter an override value ?

jnoelleAuthor

I have paid for TurboTax desktop and it is NOT properly calculating PART II -Special Allowance for Rental Real Estate Activities With Active Participation- to use NY AGI (not FEDERAL) to calculate the passive activity loss (PAL) on NY IT-182

Who do I contact to fix this software error?

I am a non resident and per NY IT-182, the entry should be NY source income.

TT is using an incorrect NY AGI on that form, which is incorrect.

However, if you preview the worksheets for the state return, the NY Part-Year Resident/Nonresident Allocation Worksheet 2023 is correct. so TT knows the value but is not using it!

AnnetteB6

In order to take a closer look and report this as a possible software issue, it would be extremely helpful to have a diagnostic copy of your tax file. The diagnostic file will not contain any personally identifiable information, only numbers related to your tax forms. All personal information is redacted with 'xxx'. If you would like to provide us with the diagnostic file, follow the instructions below and post the token number along with which version of TurboTax you are using in a follow-up thread.

Use these steps if you are using TurboTax Online:

Sign in to your account and be sure you are in your tax return.
Select Tax Tools in the menu to the left.
Select Tools.
Select Share my file with agent.
A pop-up message will appear, select OK to send the sanitized diagnostic copy to us.
Post the token number here.

If you are using a CD/downloaded version of TurboTax, use these steps:

Select Online at the top of the screen.
Select Send Tax File to Agent.
Click OK.
Post the token number here.

@jnoelle

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jnoelleAuthor

@AnnetteB6

I called in earlier in the week and sent a santized return to TT already

token number : 1165143

running desktop TT Premier

FPS 4.6.1.2 (null)

build date: Jan 27, 2024 at 12:45:19 PM

application: 2023.r16.021

2023 tax return, I am NYS non resident. only income is rental income, which has PAL

If you preview NYS return, the NY Part-Year Resident/Nonresident Allocation Worksheet 2023 looks correct for income

HOWEVER , the following are incorrect

*Tax summary button on App shows incorrect NY AGI. Per NYS tax law 631, it is only NY source income.

*NY form IT-182 then uses the incorrect NY AGI on PART II line 6.

*the calculations on form IT-182 are incorrect because of this.

*The incorrect NY AGI may be elsewhere in the return, I have not looked

My income is NOT W-2 , but foreign sourced and entered as such. It may simply be that the incorrect NY AGI fails to exclude that field and is only looking at W-2 income.

Not yet queried, but in form IT-182, Part IV – For Part I, lines 1a, 1b, and 1c how do you enter prior year PAL? State values are different from federal.

lmk if you can not access the santized return and I will resend.

How will I be updated on this issue?

the case I had opened previously [phone number removed] is now closed, but I have not received any update. Is there a new way to track this issue please?