I have an individual return 1040 where a rental property was sold and the loss carryforward from prior years was deducted in taxable income. The NJ 1040 does not take the loss I cannot figure out how to get the loss to be deducted in the year of sale its sitting on form NJ BUS2 as a loss carryforward even though the property is sold. The taxpayer has no other passive rental activity so does this mean the loss is carried forward until they do and will never be used or is there anyway to get this to be taken in the year of sale similar to the federal return. I don't do many NJ returns does this mean NJ does not allow losses to be taken when carried forward on the sale? the sale price was the same as the purchase price so no gain or loss on sale.