Dana Point, CA · Member since 2018 · 21 posts · 7 votes
Hey BP, I live in CA full time and have a rental property in Fort Wayne, Indiana.
I am working on completing my first year of tax filings and am a bit stumped.
I ended up with a net loss on the property however I am not able to take the loss on my federal return.
When completing the Indiana return I am being advised that I need to enter my "rents" as income which does not make sense to me considering I have a net loss.
My thought would be to enter a $0 for income and then in the "Indiana Net Operating Loss Deduction" enter the full NOL.
Does this sound correct or am I unable to list the full amount of my losss since I am not able to take it on the Federal return and it is more then the capital gains loss I am showing on the federal return?
My thought here again was to file the State return showing the loss this year so in future years when i have a profit I am able to utilize the prior losses.
Chris are you in the Fort Wayne REIA page on FB? that's probably better place to ask since it's indiana specific question. I am not sure about your Q because i haven't filed my return this year, but last year i used turbo tax and i don't think i paid any state tax on my one property i had at end of 2018 (not that turbo tax is very accurate)
@Chris Maudlin you should hire a CPA that specializes in real estate investors. I like @Michinori Kaneko used turbo tax last year and am hiring a CPA this year. She told me I should have filed in Indiana as well.
You should listen to PB podcast episode 370. I totally agree with David Greene a good CPA will save you more than they cost you.
yep last year i only had 1 property that was rented at the end of year. this year i have a lot more so I wanted to make sure i'm not doing something stupid! I'm a CPA too but i don't specialize in personal tax so i'm not going to pretend like i know what i'm talking about haha
This is my first year as an out of State investor with just the one property. I am filing in Indiana this year primarily to log the loss I took this year.
I now have a duplex as well and am planning on looking to add a CPA for my 2020 taxes. If anyone has a recommendation for a CPA I would appreciate it!