ThomasM125
Expert Alumni

State tax filing

The carryover rental passive loss would be reflected on line 22 of your schedule E and as such result in an allowable rental loss for the year as reported on line 8 of your form 1040. That number would flow down to your adjusted gross income on line 11 of form 1040.

 

On your Maryland tax return, the federal adjusted gross income would appear on line 1 of form 502, and as such the loss would reduce your Maryland taxable income. So, I think you may have entered the passive rental loss carryover incorrectly on your federal tax return.

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