The filing requirement will be based on the rental income before expenses, filing the return will show the net loss. If your nonresident state allows the carryover of any loss that is disallowed you would want to file to use that option.
I'm a nonresident. Do I have to file?
- If you are a nonresident, you must file if:
- you received income for the taxable year from North Carolina sources that was attributable to ownership of any interest in real or tangible personal property in the State or derived from a business, trade, profession, or occupation carried on in North Carolina, or is derived from gambling activities in this State and your total income from all sources both inside and outside the State, exceeds the amount for your filing status shown in the Filing Requirements Chart. (see image attached)
You will not need to use a "credit for taxes paid to another state" on your resident return unless you actually have a tax to pay in North Carolina. For more information you can use the link here: NC Filing
Requirements