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Level 4
October 4, 2023
Question

Do I need to file a paper return for an Alabama Non-Resident if they receive a K-1 with a passive Net section 1231 loss? Long Shot!

  • October 4, 2023
  • 1 reply
  • 6 views
I receive the following diagnostic - "Form BDE(NR), Schedule D, line 3 column C Amount Received Totals: Per Alabama electronic filing specifications, a negative amount is not allowed on this line. If the amount is correct, then the return will have to be filed as a conventional paper return."  The loss that is being reported is not even allowed on the current year Federal return.

This is the only Alabama return I will be filiing this year and I was wondering if anybody could assist.  It seems like this would be a common problem that should not prevent filing the return electronically.

Thank you!
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1 reply

PhoebeRoberts
Intuit Community Champion
October 5, 2023

https://www.revenue.alabama.gov/faqs/who-must-file-an-alabama-individual-income-tax-return/

"Nonresidents must file a return if their Alabama income exceeds the allowable prorated personal exemption."

If the only income your AL non-resident has is a 1231 loss, do they have a filing requirement?

 

If your guy has an AL filing requirement, judicious entries into the Dispositions screen, such that the loss ends up in Column E, might solve your problem.