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Resident of IA and bought a rental property in NJ. Loss on rental. Should I file NJ state tax?

I bought a rental unit in New Jersey in 2018 and when I consider the following expenses, the net income comes out to be about -$500. Since its a loss, am I obligated to file New Jersey state tax? If not is there any advantage in filing tax just for the sake of it?

Expenses,

ClosingCost, HOA, InterestPaid(Mortgage), PropertyTaxes, OtherMaintenance/Reparis, AssetDepreciation.

Also, Is my understanding of deducting all the above expenses from the rental income correct?

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Accepted Solutions
Coleen3
Intuit Alumni

Resident of IA and bought a rental property in NJ. Loss on rental. Should I file NJ state tax?

No. Since you are a nonresident of New Jersey and have no income, you are not required to file. There is no benefit to filing a return just for the sake of it. Keep track of any improvements made so that you can adjust the basis at the time of sale.

https://www.state.nj.us/treasury/taxation/pdf/current/1040nri.pdf

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1 Reply
Coleen3
Intuit Alumni

Resident of IA and bought a rental property in NJ. Loss on rental. Should I file NJ state tax?

No. Since you are a nonresident of New Jersey and have no income, you are not required to file. There is no benefit to filing a return just for the sake of it. Keep track of any improvements made so that you can adjust the basis at the time of sale.

https://www.state.nj.us/treasury/taxation/pdf/current/1040nri.pdf

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