I have a rental property in North Carolina but my Non-Resident return income is listed as zero?

[MrMan]

I completed my federal return with all the income and deductions for my rental property in North Carolina and it shows an operating loss.  When I look at my Non-Resident D-400 Sch PN for North Carolina, income from real estate is listed as zero.

Is this correct?  Shouldn't the income and expenses from North Carolina be listed somewhere on the Non-Resident return?

[DawnC]

Not if the rental property generated a loss.   The passive loss gets carried over until you have passive income, or you dispose of the property.  The non-resident return would show net income, of which there is none.    On Line 11 of Sch PN, the zero amount is carried over from the federal return.    

[MrMan]

Thanks so much!  Does this mean I don't really need to file a return with North Carolina at all?

[MarilynG1]

No, you don't need to file a return, although you should keep a record every year of  your passive losses on your out of state rental property. 

@MrMan