If you had net rental income from that property you should definitely file the prior years' tax returns for that state. You will not be amending if you never filed them. If you have unallowed passive losses that you have been carrying forward and are now using to reduce any gain on the sale, since you never filed returns showing the loss with the state they may disallow the loss. You can try filing without having filed any prior year returns and see what happens, but I recommend filing the prior year state tax returns.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
