@j0707 If you have Rental Property in Colorado, you should always file a Colorado State Return, even if your 'bottom line' Schedule E shows a loss.
If you collected rent and paid Property Tax there, you should file a Colorado Return.
Your suspended Passive Activity Losses are reported on your Federal Return on Schedule E.
If you sell a rental property with suspended PALs, you may be able to deduct them on top of deducting any Section 1231 loss from the sale. Like Section 1231 losses, deductible PALs can offset other income and also create or increase an NOL that you can carry backward or forward.
Click this link for more info on Suspended Rental Loss.
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