Question

NYS IT-182 NON RESIDENT

Forum|Forum|2 years ago
January 15, 2024
2 replies
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Does TT properly calculate PAL from NY rental real estate for non-resident on form IT-182?

Specifically, the form instructions for PART II -Special Allowance for Rental Real Estate Activities With Active Participation- to use NY AGI (not FEDERAL) to calculate the passive activity loss (PAL)

I have seen limitations on other software on this item.

tia

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TO SAVE YOU FROM READING THE WHOLE THREAD - TT does not calculate this properly. Final post on this topic from TT says "state passive activity loss calculations are not supported in the product. "

M

mglauner

New York State Tax Law conforms to the passive activity loss rules for federal purposes. However, any deduction for a passive activity loss (PAL) for a nonresident or part-year resident must be recomputed to determine the amount that is allowed if the federal adjusted gross income took into account only items of income, gain, loss, or deduction derived from or connected with New York sources.

It is possible, because of the above rules, for a nonresident to have a PAL for New York State without having a PAL for federal purposes, or to have a New York State PAL that is larger or smaller than the corresponding federal PAL.

In Part II, Line 6, enter your Federal modified adjusted gross income using only those amounts derived from or connected with New York sources.

Here's more detailed information and instructions from the New York Dept. of Taxation to help you.

J

jnoelleAuthor

I am familiar with the IT-182 form instructions for non residents. My questions is specifically regarding the TT software behavior.

**Does TurboTax has the ability (eg fields/calculations) to determine the amount in the software for a NY non resident whose only NY income is real estate NOL

**if it can not determine the amount, is there a place to enter an override value ?

J

jnoelleAuthor

I have paid for TurboTax desktop and it is NOT properly calculating PART II -Special Allowance for Rental Real Estate Activities With Active Participation- to use NY AGI (not FEDERAL) to calculate the passive activity loss (PAL) on NY IT-182

Who do I contact to fix this software error?

I am a non resident and per NY IT-182, the entry should be NY source income.

TT is using an incorrect NY AGI on that form, which is incorrect.

However, if you preview the worksheets for the state return, the NY Part-Year Resident/Nonresident Allocation Worksheet 2023 is correct. so TT knows the value but is not using it!

A

AnnetteB6

In order to take a closer look and report this as a possible software issue, it would be extremely helpful to have a diagnostic copy of your tax file. The diagnostic file will not contain any personally identifiable information, only numbers related to your tax forms. All personal information is redacted with 'xxx'. If you would like to provide us with the diagnostic file, follow the instructions below and post the token number along with which version of TurboTax you are using in a follow-up thread.

Use these steps if you are using TurboTax Online:

Sign in to your account and be sure you are in your tax return.
Select Tax Tools in the menu to the left.
Select Tools.
Select Share my file with agent.
A pop-up message will appear, select OK to send the sanitized diagnostic copy to us.
Post the token number here.

If you are using a CD/downloaded version of TurboTax, use these steps:

Select Online at the top of the screen.
Select Send Tax File to Agent.
Click OK.
Post the token number here.

@jnoelle

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A

annieland

@AnnetteB6 last year, you stated "state passive activity loss calculations are not supported in the product."

Have any changes been made to support them in 2025 TurboTax Premier?

Holy cow, I just stumbled upon this thread and took a look at my IT-182 from 2023 and I never noticed that Line 6 number is totally wrong for NY! I sold the property in 2024 and have already done the NY Nonresident return according to my Federal numbers (passive loss carryover more than wipe out gains and depreciation recapture). I'm already dealing with some unexplained TT activity on my resident state return in relation to this NYS property, but I sure hope this carryover (or lackthereof) isn't going to affect my NY return.

I never took the $25k so the NYS carryover loss amount matches the Federal this year at sale. That's going to be okay, right?