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Which states have "look back" provisions?
I have a five figure passive paper loss from 2022 as an LP in my first real estate syndication fund that I don’t want to lose in 7-10 years when the fund is expected to realize big gains..
I read the advice below in another forum; is this reliable enough advice to not file losses in 12 states? Can anyone provide advice how I can most efficiently figure out which states have look back provisions?
”Don't have to file losses but just accurate method: Others say that you do not need to file a negative amount that year because most states have what's called "look back" provisions. Instead, all you need to do is keep the amount for your records.
Then at some point/year in the future you will hopefully get a positive return. If and when that happens, you file a single state tax return that compiles them altogether and you've met your obligations. But you have no obligation to do that now, in the current year. You can see some of those advisors discussed in this thread.”
Thank you in advance Bigger Pockets!