Do I need to file North Carolina state taxes as a nonresident if I only have capital losses in the state?

[dmdyne]

I have a passive investment in NC real estate that yielded a capital loss in the first year (as shown on a K-1).  I assume I will need to file NC state taxes if the project yields a profit, but do I need to file state taxes before then?

[ErnieS0]

Possibly. You are required to file a North Carolina income tax return if your federal gross income exceeds threshold amounts listed on Filing Requirements Chart for Tax Year 2020.

Regardless, North Carolina follows federal passive loss carryforward rules. Your future passive losses may be disallowed in a future year if you do not file a state tax return showing accumulated yearly unallowed losses.

See: Individual Income Filing Requirements