State Rental Expenses Exceeds income amount

[ddubs82]

Lived in Florida home as primary residence Jan - Sep 2023.  Moved to Wisconsin Oct 2023.  Rented Florida home Oct 2023.  I received rental income from the tenants prior to becoming a Wisconsin resident (Sept 2023). 

With expenses and assets deducted I have a ~$4000 rental income for Federal.  Part of this income was 2 months' worth of rent (~$5000) which is greater than ~$4000 and occurred when I was not a Wisconsin Resident.  Is the full ~4000 non-Wisconsin income? Or is it more? ~$4000 - ~$5000?  

Thank You

[Mike9241]

rent received prior to becoming a resident is not Wisconsin income. Expenses incurred before becoming a resident are not Wisconsin expenses

[ddubs82]

@Mike9241 This is clear.  What I am asking is what to do if my expenses are more than income specifically for Wisconsin?  Am I able to carry this over?  Or am I better off changing the way my assets are depreciated so less is depreciated this year, increasing my federal taxable income amount but maximizing my state income to expense / asset amount?

[ddubs82]

Are these considered passive activity losses that I can carry forward?  Will TurboTax automatically do this or is there a specific field / form I need to fill out in 2023?  In 2024? 

Specifically for the state of Wisconsin.  

https://www.revenue.wi.gov/Pages/FAQS/ise-passive.aspx#:~:text=A%20passive%20activity%20loss%20for,i....

[MarilynG1]

Yes, if your Federal return shows a Passive Activity Loss for your Rental that you can't claim in 2023, it will be carried forward automatically in TurboTax. 

This will also apply to your Wisconsin state return.  If WI Schedule 1 is needed, TurboTax will prepare it for you. 

Here's more info on Passive Activity Loss Limitations.

@ddubs82 

[ddubs82]

@MarilynG1 How will Turbo Tax know this?  I do not have a loss for Federal, but I do for State Wisconsin due to the fact I was not a Wisconsin resident when I received some of the rental income.  On state taxes Federal Total and Non Wisconsin Income section I am simply stating all income earned for rent is non-Wisconsin income therefore it appears to be 0 not a loss.

[DMarkM1]

In the non-Wisconsin income box for rental income you can enter an amount higher than the total rental income shown and that will show a loss in the WI column for that item. 

[ddubs82]

@DMarkM1 Thanks, this is what I was thinking as well.  In doing this now I am being prompted with a Wisconsin Apportionment Schedule question.  It seems I am now required to fill this out marking "Some other kind of activity", correct?  Or would this be Not Applicable?  I am confused why this question did not show up until my Non-Wisconsin Rental Income exceeded my Federal Rental Income.  Once I select  "Some other kind of activity", I am brought to form schedule A-01. What do I need to fill out here, only 9a?  I am not a business, but individual with a rental property.