I have passive rental losses from previous years that were correctly documented on Form 8582, which was included in my North Carolina non-resident state filing. This year I have a net rental gain, but TurboTax federal is showing I have "0" rental income due to my passive loss carryover. Do I report $0 income to NC, because the federal form 8582 will suffice for documentation? If I have $0 income (and therefore owe $0 tax) do I have to file NC taxes at all?
Yes. Even if you have a rental loss, you should still file a Non-resident NC return to report that loss.
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