I am an Ohio resident with an investment (non-business, income-producing activity only) in Oklahoma starting in 2021. My GROSS Oklahoma-source income from the investment is substantially higher than that $1000 filing threshold. However, after depreciation deductions, the investment shows a loss for the year and will do so for the 5-year depreciable life of the property. When I go to file, I am getting a "Not Required to File" error since I show no taxable income on the investment. Also, the loss from the investment is being shown on the federal return (although it is not allowed this year due to passive activity rules, it must be carried forward), but it is shown nowhere on the Oklahoma return. It just shows $0 income. I assume that I still need to file a return to establish the investment and the loss so that it can be carried forward to future years. I would think the loss should be shown somewhere on the Oklahoma return. Am I correct in my thinking? Am I doing something wrong? Or do I really not need to file for 5 years until I show taxable income?
