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riny
Level 1

Massachusetts passive loss carry forward, not showing on Form 1

We live in NY and last year we bought a rental property in MA. Our only income/expense in MA is for this property, so for MA purposes, everything is passive.

 

Last year we had a large loss due to startup expenses. On my Schedule E, it shows the loss on line 20 and then shows that $0 of that is deductible (which is correct). On Form 1-NR/PY though, this just comes through as $0 and there's no indication that I have this passive loss to carry forward.

 

Is this expected? Should I just assume that TT will keep track of the loss to offset passive income in future years?

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3 Replies
riny
Level 1

Massachusetts passive loss carry forward, not showing on Form 1

Thanks but neither of those are relevant as they both deal with realizing the passive losses at the time the property is sold or disposed of. I'm more concerned about this year, and the fact that my Form 1-NR/PY is showing $0 for rental loss. I understand it's because the passive losses are all suspended, I'm just wondering if they need to be reported somewhere (other than buried on schedule E) so the state knows I have passive losses to draw against in the future.

riny
Level 1

Massachusetts passive loss carry forward, not showing on Form 1

Just closing the loop in case anyone else has the same question in the future: I e-mailed the Mass DOR using the form on their website and I got a surprisingly prompt and helpful reply. It's correct that the excess passive loss gets reported on Schedule E and nowhere else. So TT is doing the right thing.

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