In past years, 2019 and 2018 at least, all my real estate losses were allowed in my federal taxes. The was good because it offset other income. But in the Arizona state taxes, the losses were of no benefit because there was no other Arizona income to offset against. I didn't pay any tax to Arizona of course because I had a negative income.
So is there a way to carry forward a past year loss to offset this year's income in that same category of rental income on the AZ taxes?
I have read some place that when I sell the house I can apply those losses to reduce the capital gain that will be taxed. Did I understand that correctly? But either way, can I use part of the loss to offset the profit this year?
