CA client with NJ rental has net (income less expenses) rental income of $3000 and carryover suspended loss of $5000. AGI over $150K.
For Federal purposes Schedule E net is $0 ( $3000 net profit less $3000 of the $5000 supsended loss). As I understand NJ, there are no carryover suspended losses, so on the NJ 1040NR I would use $3000 rental net profit as NJ sourced income with no offsetting supended loss?
Is this correct?