This is strictly NY sourced income. You report this first in the federal return in rental income and expenses. To do this, go to:
- In TurboTax, go to federal>wages and income>see all income>Rentals, Royalties, and Farm>Rental Properties and Royalties (Sch E)>start or revisit
- Answer Yes to the question Did you have any rental or royalty income and expenses in 2019 for property you own?
- Follow the on-screen instructions as you proceed through the rental and royalties section.
- We'll ask you to enter general information about your rental (like description, address, and ownership percentage)
- You will eventually reach a screen that says Do Any of These Situations Apply to This Property? here is where you indicate you sold the property. Then you will enter information about how long it was rented .
- Eventually, you'll come to the Rental Summary screen, which is where you enter your rental income and expenses, assets and depreciation, and vehicle expenses.
- TurboTax, go to federal>wages and income>see all income>Rentals, Royalties, and Farm>Rental Properties and Royalties (Sch E)>start or revisit
- Answer Yes to the question Did you have any rental or royalty income and expenses in 2019 for property you own?
- Follow the on-screen instructions as you proceed through the rental and royalties section.
- We'll ask you to enter general information about your rental (like description, address, and ownership percentage)
- Eventually, you'll come to the Rental Summary screen, which is where you enter your rental income and expenses, assets and depreciation, and vehicle expenses.
- When you get to the rental summary screen, go to asset/depreciation. This is where you enter you year you bought the property and amount paid. This will automatically calculate the amount of depreciation taken in prior years
- If the amount calculated is different from your totals, you have the option of revising the amount.
If this is an income loss, you would allocate this loss to your NY state return and allocate your other income and deductions amounts as non-NY-sourced . Technically if you don't have any income to report, you don't need to file a NY tax return. it is advisable for you to do so however because NY may ask you why you didn't file a return when you do have this rental property rented. As a caution, it is better to be safe than sorry.
Be sure when you prepare your returns, prepare your NY non-resident return first and then your NC resident return.
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