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JD1973
New Member

Passive loss on rental Income Offset to passive gain on rental property in my in a

  • Can passive rental loss in my State offset passive rental income in a State where I’m not a resident to reduce my income taxes in the non-resident State?
  • I have a significant loss on a single- family property in FL that would fully offset a rental condo I own in WI.
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1 Reply
KrisD15
Employee Tax Expert

Passive loss on rental Income Offset to passive gain on rental property in my in a

No, Wisconsin would not allow you to allocate a passive loss from a Florida rental to the Wisconsin State return. 

 

According to the state of Wisconsin:

“The amount to include in the Wisconsin column would be the same amount included in the federal column that relates to Wisconsin sources.

Example: A nonresident of Wisconsin is a partner in two partnerships – Partnership A, which conducts business only in Illinois, and Partnership B, which conducts business only in Wisconsin. Both partnerships are determined to be passive activities. The taxpayer completes federal Form 8582 to determine the amount of passive activity loss allowed as a subtraction for each partnership for the taxable year. The allowed passive activity losses are carried to federal Schedule E which determines the amount of income/loss to be reported on federal Form 1040 or 1040-SR for each partnership. The amount included in federal income from federal Schedule E is a loss of $10,000 ($2,500 loss for Partnership A and $7,500 loss for Partnership B). When completing Form 1NPR, the nonresident would include ($10,000) in the federal column and ($7,500) in the Wisconsin column. Income/loss from Partnership A is not from Wisconsin sources and would not be taxable to Wisconsin.”

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