What are the advantages and disadvantages of filing in nonresident states with real estate K-1 losses? Is there a way to carry over state losses on a manual schedule?

[PhoebeRoberts · Accepted solution]

Every state's rules are different. California requires a return but permits the loss carryf  Oklahoma only permits a state loss carry forward if you also have a federal loss carry forward. Pennsylvania doesn't permit any carry forwards. You just have to get the forms instructions (or sometimes the statutes) and read.

[nlmoline-cpa1]

Thank you, Phoebe.

[bensnead]

it also depends on the resident state.  If the resident state is a high tax state, and the loses pertain to a low tax, non-resident state, who cares?  Why file if you do not have to.  You don't care about carrying forward a loss, because when you ultimately pay tax to that state in a future year, you'll get a credit against the home state that is equal to what you pay, or pretty close to equal.  Again, as long as the resident state is a higher tax rate, you have no worries.