On Apr 16, 11:21*am, Katie <katiej_1...[at]yahoo.com> wrote:
- quote -


P.S. NJ may be an exception--I think NJ still requires two returns of
a part-year resident, a resident return for the resident part of the
year and a nonresident return for the nonresident part. If that is
still true (I'm not sure, I didn't look it up), the loss during the NR
period would not offset the income from the resident period. NY used
to be that way but changed to a single part-year resident return a few
years ago. There may be one or two other states that still have the
two-return system for a part-year resident.

Katie in San Diego

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On Apr 16, 8:11*am, Mark Bole <ma...[at]pacbell.net> wrote:
- quote -


Short answer: Yes.

On a part-year resident NY return, NY taxable income includes (a) all
income, from all sources, during the period of residence, plus (b)
income from NY sources during the period of nonresidence. "Income" in
this sense means net -- it includes losses. So yes, the loss incurred
on the NY rental property during the nonresident part of the year is
from a NY source and is allowed (all else, e.g. passive limitations,
being equal) to offset NY income.

The same is generally true in all states that impose comprehensive
individual income taxes.

Katie in San Diego

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Is it possible to get a double benefit from a source "loss" from a
non-resident state?

For income, it's clear that if you are a resident of state A and have
source income from state B as a non-resident, you will be taxed by both
states on the same income, usually with a credit of some kind from one
of the states to offset the double taxation.

But suppose taxpayer is resident of state A for first part of year, with
wage income. Upon moving to state B, the house in state A is converted
to a rental and incurs a loss during the rest of the year (non-resident
of state A).

For state A, can the source loss during the non-resident period be used
to offset the income from the resident period on the part-year return
for state A? For state B, it's clear the loss (and income) from any
source while a resident is included on the part-year return for the
period while a resident.

In other words, while there is a mechanism to eliminate double taxation
of income, is there a similar mechanism to prevent double deduction of a
loss?

In case it matters, A = New York and B = California.

-Mark Bole

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >