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Non-resident real estate in NJ - Do I need to file if I lose money?

I guess I did! :)

I'm still confused about the statute of limitation for the 27.5 year paperwork requirement for depreciation (and up to 40 years for AMT).

What I 'meant' to ask was whether I have to hold on to all paperwork for three years for as long as 40 + 3 years?

Reading the very nice 87-page document you referenced, unfortunately I did not find a single instance of the word "depreciation", which was my question ... so I don't think the answer is in that document (but I could be wrong because it may cover it in other words).

However, that 'was' a very nice document otherwise! In fact, I did get further information on the basics of the statute of limitation.

These further basics are:

- The statue of limitations (SOL) for assessment of taxes expires three years from the due date of the return or the date filed, whichever is later.

- The statutory period for assessment or collection is six years from the date the return is filed or deemed filed, whichever is later, in cases where there has been a substantial omission (more than 25 percent) on the return of gross income.

- the burden of proof shifts to the government to support the six-year statute.

- The three and six-year rules do not apply to: (1) filing a false or fraudulent return (2) Willfully attempting to evade tax, or (3) Failing to file a return. In these instances, the tax may be assessed or collected at any time

I'll open a separate question about the statute of limitations because I am really lousy at paperwork and therefore would love to not have to save 40 +

3 (or 40 + 6) years worth of paperwork!
Reply to
SF Man
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Excerpt:

Begin Quote

Property. Keep records relating to property until the period of limitations expires for the year in which you dispose of the property in a taxable disposition. You must keep these records to figure your basis for computing gain or loss when you sell or otherwise dispose of the property.

Generally, if you received property in a nontaxable exchange, your basis in that property is the same as the basis of the property you gave up. You must keep the records on the old property, as well as the new property, until the period of limitations expires for the year in which you dispose of the new property in a taxable disposition.

End Quote

It could be worse. In theory, anyway.

Let's say Grandpa acquired IBM stock as a gift from his father, who bought the stock in 1934. Grandpa gifted the stock to you in 2003. So now it's 2011, 77 years after the stock was bought and you decide to sell. And letls say you have those records. That's about an 80 year holding of those records.

Reply to
Arthur Kamlet

This violates the 8th amendment "... nor excessive fines imposed, nor cruel and unusual punishments inflicted".

Anyway, what CA law allows for this tax? Some digging around brought me to publication 1024

BEGIN QUOTE

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Penalty NameFailure to Provide Information Requested/ Failure to File a Return Upon Demand

CA Code

19133

IRS Code None

Reason Any taxpayer for failing to provide requested information, or failing to file a return after notice and demand.

Computation

25% of total tax liability without regard to any

END QUOTE

And then

BEGIN QUOTE

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If any taxpayer fails or refuses to furnish any information requested in writing by the Franchise Tax Board or fails or refuses to make and file a return required by this part upon notice and demand by the Franchise Tax Board, then, unless the failure is due to reasonable cause and not willful neglect, the Franchise Tax Board may add a penalty of 25 percent of the amount of tax determined pursuant to Section 19087 or of any deficiency tax assessed by the Franchise Tax Board concerning the assessment of which the information or return was required.

END QUOTE

The use of adjectives such as "reasonable" makes things vague.

Reply to
removeps-groups

Does that include $0 as the amount?

Both I (haven't been in NJ in 2010, don't own any property or do any business in/with anyone in NJ in 2010) and the OP (owns rental property in NJ with a loss in 2010) have $0 NJ source income in 2010.

Seth

Reply to
Seth

The determining factor isn't the number shown on the NJ tax return, but the determination of NJ source income using typical accounting rules. In the case of the OP, he has negative NJ source income (a loss), therefore he has to file a NJ tax return. He reports that negative gross income as $0 on the return according the instructions for preparing the return.

Ira Smilovitz Leonia, NJ

Reply to
ira smilovitz

Yup.

I'm a recipient of that cruel & unusual punishment.

They increase your taxes by 25% whether or not you ever owed them a penny! Your only infraction is to not take their letters seriously enough to respond within a month to them!

I googled it at the time, and there is no other state in the nation that does this!

Even the feds will simply calculate your taxes for you if you don't file within a couple of years (ask me how I know) and, when they find out that you never owed them a red cent, they simply give you back your FULL refund, without uttering a word (they should thank you, I know).

But, California, is filled with, pardon the French, outright bastards. They care about nothing more than taking your money from you. Sorry to be so blunt and ot ...

Now back to our program ...

Reply to
SF Man

Drat!

I 'think' I understood ... but ... may I confirm with this question?

Does that mean that for normal depreciation, you must keep the original records for 27.5 years plus the 3:6 years of the statute of limitations?

Likewise, for AMT purposes, does that 27.5 years expands to 40 + 3:6 years for the keeping of records?

Did I read that right?

Reply to
SF Man

No. I spoke of disposing of the property and you are talking of depreciable life.

Reply to
Arthur Kamlet

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