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Updated 9 days ago on . Most recent reply presented by

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Seamus Cronin
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Ohio State Tax Filing - Netting Rental Income and Losses Across States

Seamus Cronin
Posted

My federal tax return worksheet shows a net passive loss from investments rental properties. This is because the net loss on my NY properties (where I reside) override the net rental income on my Maple Heights properties in Ohio.  I therefore report zero rental income on the federal return because I am not a real estate professional and do not deduct the net loss.  But Am I permitted to net my NY rental loss against the net gain on my Ohio properties on the Ohio state return??  H&R Block tax program seems to think I can because the starting point is the Federal return when allocating income to Ohio. My federal rental income is zero and therefore nothing to allocate to Ohio. Obviously I still intend to file an Ohio state return even though there is tax owed, 

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Marc Rice
  • Real Estate Agent
  • Columbus, OH
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Marc Rice
  • Real Estate Agent
  • Columbus, OH
Replied
Quote from @Seamus Cronin:

My federal tax return worksheet shows a net passive loss from investments rental properties. This is because the net loss on my NY properties (where I reside) override the net rental income on my Maple Heights properties in Ohio.  I therefore report zero rental income on the federal return because I am not a real estate professional and do not deduct the net loss.  But Am I permitted to net my NY rental loss against the net gain on my Ohio properties on the Ohio state return??  H&R Block tax program seems to think I can because the starting point is the Federal return when allocating income to Ohio. My federal rental income is zero and therefore nothing to allocate to Ohio. Obviously I still intend to file an Ohio state return even though there is tax owed, 


 I can introduce you to my go to CPA who can help if you'd like.

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