1099misc for a rental property

[WFred]

1099misc for a rental property in TN which is entered in my Fed return, not transferring to my PA state return, yet it shows up on my sch E.  If I add the 1099misc manually won't it be doubling the amount of rental income?

[ErnieS0]

Pennsylvania asks several questions about a rental property in the Pennsylvania section. Make sure the box “This property is not taxable as a rental/royalty in PA” is NOT checked.

Checking the box will remove the property for your PA return. PA residents are taxed on income earned everywhere.

[WFred]

Thank you ErnieS0 for your prompt reply.  No The box "This rental property is not taxable in PA" is not checked.  This rental income is from a property in TN.  I know that I have to pay taxes on it in PA.  I'm actually claiming an operating loss on this property, and my Federal Schedule E reflects that.  Could this be the reason that my 1099misc is not transferring?

[DianeW777]

You are correct.  You do not want to double the income on your state return. As long as your Schedule E is showing up as part of your Pennsylvania (PA) return then the 1099-MISC is included as part of that schedule (rental activity overall loss).  

As you may know, PA does not allow a loss from one category of income to offset another category of income on their state return.  Example a gain from a sale would not be offset by a loss from a rental property.

Please clarify with more details if you need more assistance and one of our tax experts will help you.

[WFred]

Thank you DianeW777 for the clarification.  Yes I realize that rent is considered passive income and I can only deduct my rental losses up to that amount in PA.