Question
Nonresident in Louisiana with a loss on the Federal return for Texas real estate
I am preparing a Louisiana nonresident individual income tax return for a client who owns income-producing real estate located in Texas. The client’s federal adjusted gross income exceeds the threshold for deducting the passive real estate loss, resulting in a federally disallowed loss.
On the Louisiana nonresident allocation worksheet, Line 7, entering zero in the Louisiana column causes the entry to flag as an error. Please confirm whether zero is the correct Louisiana allocation for this line under these circumstances.
