NYS IT-182 NON RESIDENT

Forum|Forum|2 years ago
January 15, 2024
16 replies
117 views

Does TT properly calculate PAL from NY rental real estate for non-resident on form IT-182?

Specifically, the form instructions for PART II -Special Allowance for Rental Real Estate Activities With Active Participation- to use NY AGI (not FEDERAL) to calculate the passive activity loss (PAL)

I have seen limitations on other software on this item.

tia

_____

TO SAVE YOU FROM READING THE WHOLE THREAD - TT does not calculate this properly. Final post on this topic from TT says "state passive activity loss calculations are not supported in the product. "

MarilynG

Level 15

New York State Tax Law conforms to the passive activity loss rules for federal purposes. However, any deduction for a passive activity loss (PAL) for a nonresident or part-year resident must be recomputed to determine the amount that is allowed if the federal adjusted gross income took into account only items of income, gain, loss, or deduction derived from or connected with New York sources.

It is possible, because of the above rules, for a nonresident to have a PAL for New York State without having a PAL for federal purposes, or to have a New York State PAL that is larger or smaller than the corresponding federal PAL.

In Part II, Line 6, enter your Federal modified adjusted gross income using only those amounts derived from or connected with New York sources.

Here's more detailed information and instructions from the New York Dept. of Taxation to help you.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

jnoelleAuthor

Level 2

I am familiar with the IT-182 form instructions for non residents. My questions is specifically regarding the TT software behavior.

**Does TurboTax has the ability (eg fields/calculations) to determine the amount in the software for a NY non resident whose only NY income is real estate NOL

**if it can not determine the amount, is there a place to enter an override value ?

jnoelleAuthor

Level 2

I have paid for TurboTax desktop and it is NOT properly calculating PART II -Special Allowance for Rental Real Estate Activities With Active Participation- to use NY AGI (not FEDERAL) to calculate the passive activity loss (PAL) on NY IT-182

Who do I contact to fix this software error?

I am a non resident and per NY IT-182, the entry should be NY source income.

TT is using an incorrect NY AGI on that form, which is incorrect.

However, if you preview the worksheets for the state return, the NY Part-Year Resident/Nonresident Allocation Worksheet 2023 is correct. so TT knows the value but is not using it!

AnnetteB6

Employee Tax Expert

In order to take a closer look and report this as a possible software issue, it would be extremely helpful to have a diagnostic copy of your tax file. The diagnostic file will not contain any personally identifiable information, only numbers related to your tax forms. All personal information is redacted with 'xxx'. If you would like to provide us with the diagnostic file, follow the instructions below and post the token number along with which version of TurboTax you are using in a follow-up thread.

Use these steps if you are using TurboTax Online:

Sign in to your account and be sure you are in your tax return.
Select Tax Tools in the menu to the left.
Select Tools.
Select Share my file with agent.
A pop-up message will appear, select OK to send the sanitized diagnostic copy to us.
Post the token number here.

If you are using a CD/downloaded version of TurboTax, use these steps:

Select Online at the top of the screen.
Select Send Tax File to Agent.
Click OK.
Post the token number here.

@jnoelle

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

AnnetteB6

Employee Tax Expert

@AnnetteB6 thank you for the update.

I am confused that the proposed solution is "allowing the user to edit line 6".

Shouldn't the solution be to correct the calculation/value being used for NY AGI for non residents to conform with the NYS tax law?

this is the error - we agreed above that my NYI AGI is zero, but the software uses an incorrect number

I look forward to your reply

The additional details shared after the request was sent to the developers is that state passive activity loss calculations are not supported in the product. So when it is determined to not be supported, it will not be changed or corrected. The best you can hope for is that at some point in the future the information on line 6 can be edited.

@jnoelle

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"