All Forum Posts by: Account Closed

 I’m dealing with the same situation and unfortunately my accountant is trying to learn about it alongside me. She seems to think we only need to claim the losses on the federal tax return, and can simply report the losses at a later date when there are no games, needing to be offset. 

I made a passive real estate fund investment as LP in 2022 with four-figure passive losses reported in 12 states. I have no passive gains to date. Is there any reliable way for me to look at which states allow for year to year carryover of these losses?  I don’t really want to pay for tax returns in all of the states if I don’t know that the losses can be carried over.

I paid my anticipated federal tax due on time as per my accountant’s advice, but we filed for an extension while we figure this out. Thanks for any advice. 

With respect to state tax losses from a K-1 you are receiving, and if you are filing as a nonresident in that particular state, not all states allow passive loss carryovers. Some states for example start from Federal adjusted gross income, others start from federal taxable income, and yet others start from their own computation. Because of differing state tax laws, not all states will allow nonresidents to have carryovers. Therefore, you must speak to your CPA to inquire your state's tax laws where you may have filing exposure and whether it makes sense to file.

Lastly, if your CPA is charging you $180 per state tax return... that is rather cheap. But you do need to understand whether it makes economic sense given what I said above.