Hi all — I’m a resident in MD (NY nonresident) with:
~$3,000 NY-source wages (RSUs that vested after I moved, but sourced to NY because they were earned while I worked in NY)
A NY rental property with a $5,000 net loss
On my federal return, that $5,000 rental loss is “unallowed/suspended” due to passive activity loss limits (my federal AGI is > $150k).
For NY filing (IT-203 + IT-182), I’m trying to understand:
Does IT-182 potentially make the full $5,000 “allowed” for NY because NY modified AGI (line 6) is low (basically the ~$3k NY wages)? I don't have other NY sourced income/gains.
If NY allows the full $5,000, can I net it against the $3,000 NY wages on IT-203 (so NY taxable income becomes negative and NY tax becomes $0)?
What happens to the extra $2,000 loss beyond the $3,000 wages:
Does NY carry it forward in any way (as a passive loss carryover or NY NOL), or
Is it effectively used up / provides no benefit in NY this year (other than reducing NY tax to $0 and refunding any NY withholding)?
I’m mainly confused about whether NY has any mechanism to preserve the excess loss when NY-source income is smaller than the allowed loss.
Thanks!
