Is it possible to get a double benefit from a source "loss" from a non-resident state?
For income, it's clear that if you are a resident of state A and have source income from state B as a non-resident, you will be taxed by both states on the same income, usually with a credit of some kind from one of the states to offset the double taxation.
But suppose taxpayer is resident of state A for first part of year, with wage income. Upon moving to state B, the house in state A is converted to a rental and incurs a loss during the rest of the year (non-resident of state A).
For state A, can the source loss during the non-resident period be used to offset the income from the resident period on the part-year return for state A? For state B, it's clear the loss (and income) from any source while a resident is included on the part-year return for the period while a resident.
In other words, while there is a mechanism to eliminate double taxation of income, is there a similar mechanism to prevent double deduction of a loss?
In case it matters, A = New York and B = California.
-Mark Bole