Do I need to file a state return for rental property with a net loss?

[Chris-W]

I am military stationed in Texas and own a rental property in NJ.  In the pas I have filed a NJ state return even though my rental property has always show a net loss.  Do I need to file with NJ if my rental property there had a net loss over the year?

[DDollar]

Yes, you should file a New Jersey non-resident tax return.  Even though all you will be reporting is a loss, you need to report that loss so that if/when you have a profit from the rental or sell the property you can take the losses that you will be carrying forward.  If you don't file and report the loss, it won't be available when you sell or if you make a profit.