Non-resident with a 2007 Virginia rental loss... can I carry it forward?

[LCP]

Texas resident had a significant loss on a rental property located in Virginia in 2007.

This year he has has a significant profit.

I'm not finding a way to carry the 2007 loss forward. The VA instructions seem to suggest that a Federal NOL can be adjusted to a VA NOL and carried forward but absent a Federal NOL no calculations are done.

Should I keep looking or maybe call Virginia?

[Burke]

This should be a suspended passive loss for 2007, which would carryforward to 2008 on the fed return from Form 8582. You have to attach an entire copy of the federal return to a non-resident VA return, so if it was handled this way, there should be no problem.

[Possi]

attached 1040 on efiled VA Non Resident return?

This should be a suspended passive loss for 2007, which would carryforward to 2008 on the fed return from Form 8582. You have to attach an entire copy of the federal return to a non-resident VA return, so if it was handled this way, there should be no problem.

Really? I e-file the VA non-resident and it doesn't call for any special treatment. (No attachment of the Federal)

There is a place on my Sch E rental property, to pop in the carryforward loss. Maybe that is for active participation. It generates the form 8582 where necessary.

The ones I have done from the beginning that have passive losses are automatically generating the 8582, but if I was setting one up, I'd pull that form down and see where I could pop that carryforward loss in.

Is that too easy? I must be doing something wrong....... hope not!

[LCP]

This taxpayer has other rentals with income and there was no passive loss carryforward on the state level.

He just had the one source of income (the rental property with a $20k loss) in Virginia in 2007 which we are trying to carryforward to offset his $10k Virginia rental income in 2008.

[LCP]

I meant to say there was no passive loss carryforward on the Federal level in 2007.

[Possi]

Matching rule

Texas resident had a significant loss on a rental property located in Virginia in 2007.

This year he has has a significant profit.

I'm not finding a way to carry the 2007 loss forward. The VA instructions seem to suggest that a Federal NOL can be adjusted to a VA NOL and carried forward but absent a Federal NOL no calculations are done.

Should I keep looking or maybe call Virginia?

Virginia has a matching rule that the Federal income must match the State income.

Was the net income enough to require filing? TTB States pg VA 1?

The VA practitioner hotline number is different than what is in the TTB. If we can't get to the bottom of it, call 804-367-9286. Hold time is minimal and you have an option for them to call you back if you hold for more than a couple of minutes.

~possi, Va Beach

[LCP]

Thanks. I just called the hotline and they confidently indicated that the 2007 Virginia rental loss does not carryforward.

[Possi]

Good

I'm glad you got your answer.
=)

[Burke]

Thanks. I just called the hotline and they confidently indicated that the 2007 Virginia rental loss does not carryforward.

That would be correct. If there was no c/f on 2007 federal, then no c/f to VA.