Do I have to amend my tax return because of a rental loss?


Q. I am retired, live in New Jersey and receive Social Security payments; I also have a rental property. I had a rental loss carryforward from 2017, but I failed to capture it in 2018. Can I still claim it?
— Landlord

A. We’re sorry to hear you didn’t claim it in 2018.

The New Jersey rental loss carryover from 2017 is a valuable deduction called the “Alternative Business Calculation Adjustment” (ABCA), said Gail Rosen, a Martinsville-based certified public accountant.

She said this rental loss will allow you to net future gains from the same category with 50% of these losses from the past.

“You must amend your New Jersey 2018 tax return and adjust for the activity in 2018,” she said. “The amendment will then carry forward the correct amount to your New Jersey 2019 tax return.”

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This story was originally published on Aug. 11, 2020. presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.