A CA resident owns a rental property in MA. Each year, this rental shows a loss. They have no other MA source income. Therefore, this loss provides no benefit on their MA NR tax returns.
Can the taxpayer claim those accumulated losses in full in the year of sale against the gain on the rental property?
I understand MA does not allow an NOL carryforward deduction. They do allow suspended PAL carryforward to offset. However, I do not believe these losses are being suspended under the PAL rules.