I'm in CT and get a lot of NY commuters, but this one is different. CT resident owns a single-family rental in NY. Rents it for profit, no personal use, no friends or family. But has a small loss. No other NY-sourced income. Lives and works in CT. AGI around $70,000 but NY part is -1,000. Does she need to file a NY return? Not NYC, by the way. Instructions refer to NY AGI. Is that her federal AGI per NY law? Or, just her NY items that would pertain to her federal AGI? Kleinrock tells me to compute a base tax as if she were a resident of NY. I'm familiar with the process from my commuters, but does this mean I have to file a return, compute a base tax, etc., even for someone who has negative NY income? Thanks for your help.
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NY Prepares Needed
Just needing some interpretation of what NY means when they say to file if NY AGI is over $ X. Is that client's AGI using NY law? Then she has to file. Or, is it just the NY items? Then too little to have to file. Help! -
Lion> On a non res return you are asked to assign NYS source income/loss. Fed AGI is used later in the process to determined a NY percentage of income to compute NYS taxes based on total NYS taxes. In your case no NYS taxes will be developed. But there is the issue of NOL carryforward that has been discussed many times in the past when it comes time to sell this property and no tax benefit was rec'd from NYS in prior years. So NY gain on sale would be different than FED and Conn.Last edited by BOB W; 03-24-2008, 09:09 AM.This post is for discussion purposes only and should be verified with other sources before actual use.
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Thanx
Good point, Bob, re eventual sale. She inherited a house from her father, she and three siblings. Came to me this year for 2007 taxes. By 2007 she'd bought out her siblings, renovated the bathroom, and replaced the roof, and was renting the house. (Nothing showed in 2006, but I didn't prepare that return. I'll talk to her about that.) She'll have a $1,000 gain to a $1,000 loss; just now got the call from the assessor giving me land assessment vs. total, so I can get depreciation right. She lives and works in CT, making a nice salary as a single woman. So, she won't have to file in NY, right? Or, does she have to file even though she'll be below the threshold for owing taxes?
When she sells, will her NY basis be higher, because she never received a tax benefit from depreciation in NY?
Thank you very much for your help. I have lots of commuters who work in NY and have W-2s with NY earned income, but didn't have any NY real estate owners until now. And, my son, a PA resident, just bought commercially-zoned land in NY to build a bakery and rental apartment. Gotta learn about this stuff.Comment
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Most NOL's need to be created by filing and electing to carry the loss forward, so..........This post is for discussion purposes only and should be verified with other sources before actual use.
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Got It
Gotcha. Didn't think about a NY NOL, since she has other income in CT. But, she doesn't have any other NY income... And, thank you very much.Comment
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