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Nonresident in Louisiana with a loss on the Federal return for Texas real estate

cpajustintx
Level 2

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.

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4 Comments 4
IRonMaN
Level 15

I don't do Louisiana, but the first thing I would do is check the Louisiana instructions rather than wait for someone from Louisiana to maybe find this post.


Slava Ukraini!
Just-Lisa-Now-
Level 15
Level 15

LA nonresident with income producing property in TX, what state are they a resident of?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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cpajustintx
Level 2

The ProSeries instructions say it is not an error even if it is displayed red. Red sometimes means an unusual data entry. 

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cpajustintx
Level 2

The client is a resident of Texas.