I live in Florida and have rental property in CT. I have a passive loss carryover last year of $4000. This year (2019) I have a gain of $1000. I do my Federal return in TT but have a CPA do my CT state taxes. I received a K-1 from him with the $1000. gain.
I put this in my Federal Return and I have to pay taxes. Why? Shouldn't the gain be taken off the capital loss from last year?
Related to this, my CPA is now telling me I have to file a non-resident CT return. Why?
Please help me understand 🙂
