IT-182: Passive Activity Loss Limitations For Nonresidents and Part-Year Residents (2024)
New York · NY DTF · Used for tax years 2024
New York Form IT-182 calculates passive activity loss limitations for nonresidents and part-year residents. It reports income, losses, and prior-year unallowed losses from rental real estate and other passive activities to determine the losses allowed for the year.
Who files this form
Nonresident or part-year resident individuals, estates, and trusts must file Form IT-182 to report allowed passive activity losses from New York sources for 2024.
A New York passive activity loss can exist even when there is no federal passive activity loss. It can also be larger or smaller than the federal loss.
If you claim a New York passive activity loss but not a federal one, you must file Form IT-203 or Form IT-205 to report any carryover of passive activity losses from New York sources.
What you'll need
Have these forms and details available:
- Federal Form 8582 and its instructions. Compute your federal passive activity loss limitation before completing IT-182.
- Your return, for the name and identifying number shown on it.
- Each activity's name or the property's description and address, plus rental real estate acquisition and sale dates, if applicable.
- Current-year income and losses, prior-year unallowed losses, and any prior-year unallowed commercial revitalization deduction (CRD).
- The income information needed to compute modified adjusted gross income using amounts from New York sources.
- Form IT-203, or Form IT-205 and Form IT-205-A, as applicable, for reporting the allowed losses.
If an exception means you did not have to file federal Form 8582, complete its Parts IV through IX as if you were required to file it before completing IT-182.
How to file
Submit Form IT-182 with your Form IT-203 or Form IT-205. The supplied text does not give a mailing address or electronic filing instructions.
Before completing IT-182, calculate your federal passive activity loss limitation on Form 8582. Then complete IT-182 using the activities from New York sources, following the separate-period rules for part-year residents.
Use Parts VIII and IX to identify each activity's allowed New York loss. Report the recomputed loss in the New York State amount column of IT-203 or on IT-205-A, on the same line where the loss was reported for federal purposes.
Common mistakes
- Continuing when line 3 is zero or more. Stop there and submit IT-182 with your return. All losses are allowed, including prior-year unallowed losses entered on lines 1c or 2c. Report them on the forms and schedules normally used.
- Completing Part II when you are not eligible. If you are married filing separately and lived with your spouse at any time during the year, skip Part II, leave line 9 blank, and go to line 10.
- Entering negative amounts in Part II. The form says to enter all numbers in Part II as positive amounts.
- Missing the line 6 instruction. If line 6 is at least as much as line 5, skip lines 7 and 8 and leave line 9 blank.
- Exceeding the line 8 limit. Do not enter more than $25,000. If you are married filing separately and lived apart from your spouse all year, the limit is $12,500.
- Discarding your copy too soon. Keep the IT-182 used for your reported amounts for three years after the sale or disposition of all activities included on it.
Questions people ask
Can I have a New York passive activity loss without a federal one?
Yes. The instructions say a nonresident can have a New York passive activity loss without a federal loss, or a New York loss that differs from the federal amount.
How do part-year residents calculate their loss limitation?
Recalculate as if separate federal returns were filed for the resident and nonresident periods. For the resident period, use the items that would have been reported on a separate federal return for that period. For the nonresident period, use only income and losses from New York sources.
Do other loss limits apply first?
Generally, yes. Losses are subject to other limits, such as basis and at-risk limits, before the passive activity loss limits apply.
Where do I calculate losses to carry forward?
Use Parts IV through IX of IT-182 and the instructions for Part III of federal Form 8582 to calculate each activity's allowed New York loss and unallowed New York loss to carry forward.