Schedule K-1 question (form 1065) (income, investments, CA)

[deepu77]

The forum has been very helpful in the past so hoping it continues


I am resident of state: CA. I have always filled the fed and CA state tax.



Last year - I joined couple of partnership(s) which involved passive investment in rental multi-family units.


So now I have (all reporting loss -ve income)

• 2 - Schedule K1's (form 1065)
• Schedule K-1 (Form 765) - KY state
• 165 Schedule K-1(NR) - AZ state

I do not have +ve income to report in KY, AZ.


Do I need to file 1 fed and 3 states (CA, KY, AZ) (or) Do I need to file 1 fed and 1 state (CA) and ignore the schedule K-1's from other states since I do not +ve income.


Please advise. Thanks in advance.

[deepu77]

anyone who has insight and might have faced same situation?

[SuiteLiving]

Originally Posted by deepu77

The forum has been very helpful in the past so hoping it continues


I am resident of state: CA. I have always filled the fed and CA state tax.



Last year - I joined couple of partnership(s) which involved passive investment in rental multi-family units.


So now I have (all reporting loss -ve income)

• 2 - Schedule K1's (form 1065)
• Schedule K-1 (Form 765) - KY state
• 165 Schedule K-1(NR) - AZ state

I do not have +ve income to report in KY, AZ.


Do I need to file 1 fed and 3 states (CA, KY, AZ) (or) Do I need to file 1 fed and 1 state (CA) and ignore the schedule K-1's from other states since I do not +ve income.


Please advise. Thanks in advance.

Only reason to file in KY or AZ is to establish NOLs for those states in the event those investments start reporting income. Otherwise I'd ignore.

[deepu77]

Originally Posted by SuiteLiving

Only reason to file in KY or AZ is to establish NOLs for those states in the event those investments start reporting income. Otherwise I'd ignore.

Thank you