padam10
New Member

I lived in Texas for entire year 2017. Had a rental Home in NY but sold for loss in 2017. Had Zero rental income in 2017. do I need to file taxes in NY ?

 
DanielV01
Expert Alumni

Investors & landlords

It depends.  On the surface you may believe that you have a loss, but when it comes to sales of rental income there are hidden taxable amounts that may require you to file a return for NY.  One of the main items is depreciation recapture.  Please see this link that describes this in detail:  http://homeguides.sfgate.com/paying-back-depreciation-rental-property-42080.html

Depreciation recapture occurs whether or not you actually took depreciation on your home while you rented it.  Because of this, you very likely have a taxable event on the rental home despite the apparent loss on the sale.  In this FAQ, you can see how TurboTax will help you to determine this:  https://ttlc.intuit.com/replies/3388350

If you have anything taxable on the Federal Return, you will want to file a New York return even if the event has zero tax in NY.  New York is very aggressive in enforcing tax rules, so I do recommend reporting it now to avoid difficulties later.

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padam10
New Member

Investors & landlords

Never took depreciation. Lived there until 2015. Rented in 2016 and sold in 2017 and had zero income  in NY.  Do not mind filing but not sure what to file ?
DanielV01
Expert Alumni

Investors & landlords

Even though you didn't take depreciation, you were entitled to do so, so now that amount has to be recaptured for tax sake.  (If you didn't, you can amend your 2016 return to include it, as it will likely get you some refund back).  It was only one year, though, so it likely won't have an effect on your return.  With the Federal result, however, you can have that transferred to a NY Nonresident return.  The depreciation recapture from the sale of the home is the only item that would be taxable in NY.  If there is a tax liability, you will need to file and pay the tax.  If there's not, you will not be required to file but may choose to do so just so that NY doesn't come asking questions later.  If you see the FAQ that is embedded in my answer, this will certainly help you to enter into TurboTax.
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