passive loss on a k-1

Taxpayer is in a real estate partnership. He is in NY. The property in VA.

The federal k-1 shows a 1k loss

The NY k-1 shows 100% allocation of the loss to NY.

The VA k-1 shows the 1k loss as well.

Should i be filing a VA k-1 to reflect the passive loss; not even sure how VA handles passive losses.

ty!

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Level 13

Maybe. It helps for the future when the property is sold, in case VA allows carryover of passive losses.

VA uses Form 763 for individuals. I assume the partnership preparer filed the VA K-1, along with the VA 502. Partners don't file K-1s.

<<The NY k-1 shows 100% allocation of the loss to NY.>> NY residents own 100% of their interests and report 100% of their loss.

<<The VA k-1 shows the 1k loss as well.>> Property is in VA 100%, according to you.

If there is a gain on the sale in the future, 100% gets taxed in VA, then NY resident partner reports 100% of the gain and gets a VA tax credit.

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