This is my first time filing MA tax return. I am filing because I invested in a real estate partnership with properties in MA. They sent me a K-1. Crucially, I have other K-1s from other states.
The only taxable income in MA is the single MA K-1. The income and losses in MA are as follows:
Box 1 - ordinary business income: $300
Box 2 - net rental real estate income: -$2000 (loss)
My expectation was that I would have net zero taxable income and -$1700 suspended loss to carry over on the MA return. This is supported by the following article (although it seems old, there is no indication that it is no longer valid): https://www.mass.gov/technical-information-release/tir-89-2-massachusetts-income-tax-treatment-of-pa...
Specifically, the article says that for the state return, I should create a version of Form 8582 with only the MA income.
HOWEVER: TurboTax put ALL my K-1s on this form. This results in Part VII ratio (column b) for the MA income being 5%, instead of 100%. Therefore, instead of offsetting the entire $300, TT calculates a mere $15 offset, $1985 carryover, and net taxable income of $285.
I don't see any way to adjust this form manually! Any ideas? Am I doing something wrong, or is this a bug in TurboTax?? How can I fix this?
Thank you!
