Massachusetts Tax Loss Carryforward Question

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orlandoguy
Posts: 91
Joined: Sun Feb 24, 2008 8:08 pm

Massachusetts Tax Loss Carryforward Question

Post by orlandoguy »

Hoping the great minds here can either 1) help answer this very specific question or 2) help identify a forum with individuals equally as smart with taxes as Bogleheads are with investments.

Situation:

1. Investor in real estate partnership with properties in approximately 20 states whose business was significantly impacted by COVID so generated substantial K-1 losses for 2020. Florida resident.

2. High 5-figure loss in Massachusetts (part operating/part capital gain) but it is unlikely that the partnership will invest or derive any income from the Commonwealth for the foreseeable future.

Questions:

1. Should I file a 2020 return to reflect/protect this loss? If so, will I need to file each year going forward to continue to carry forward the loss even if there's no income in the event that I ever have Massachusetts sourced income again?

2. Is there any opportunity to carry this loss back to 2017 when my spouse sold a condominium there and had a substantial gain?

Many thanks!

Orlandoguy
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