Form IT-182: Passive Activity Loss Limitations for Nonresidents and Part-Year Residents (2026)

Q: How much income can be excluded on IT-221?

You may exclude up to <b>$5,000 ($10,000 for joint filers)</b> of qualifying disability income, reduced by any NY pension or annuity exclusion previously claimed.

Q: Are HSA contributions deductible for New York tax?

No—unlike the federal system, New York does <b>not</b> allow an HSA deduction.

Last reviewed: 2025-10-29

Use the New York Tax Form Calculator Form IT-182 — Passive Activity Loss Limitations for Nonresidents and Part-Year Residents as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 New York state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.

Form IT-182 is used by nonresidents and part-year residents of New York to recompute passive activity losses (PALs) so that only New York source income, gains, losses, and deductions are included in the limitation. This prevents non-NY passive losses from reducing New York tax. Estates and trusts apply the same approach using fiduciary schedules.

Complete IT-182 when federal Form 8582 applies and you have New York source passive items. Part-year residents must split the year and apply the rules separately to the nonresident and resident periods as instructed on the form.

Who files: Nonresidents and part-year residents with passive activity items derived from or connected with New York sources (e.g., NY rental property, NY business interests reported on K-1).
NY-source only: Rebuild each passive activity using only amounts properly sourced to New York. Non-NY amounts are excluded from the IT-182 limitation.
Year split for part-year: Treat resident and nonresident periods separately. For the nonresident portion, include only NY-source items; for the resident portion, include items taxable by New York during that period.
Rental real estate special allowance: If you actively participated in rental real estate, you may claim the special allowance on IT-182, subject to NY-source modified AGI phase-out rules.
Carryforwards: Unallowed NY-source passive losses are carried forward for New York purposes only. Track them separately from federal carryforwards.

Passive Activity Loss Limitations For Nonresidents and Part-Year Residents
See the instructions on page 4, before completing this form.
Part I – Passive activity loss
Rental real estate activities with active participation
1a	Activities with net income from Worksheet 1, column (a).						1a
1b	Activities with net loss from Worksheet 1, column (b)						1b
1c	Prior years unallowed losses from Worksheet 1, column (c) (see instructions)						1c
1d	Add lines 1a, 1b, and 1c								1d
Commercial revitalization deductions from rental real estate activities
2a	Commercial revitalization deductions from Worksheet 2, column (a)						2a
2a	Prior year unallowed commercial revitalization deductions from Worksheet 2, column (b)						2a
2c	Add lines 2a and 2b								2c
All other passive activities
3a	Activities with net income from Worksheet 3, column (a)						3a
3b	Activities with net loss from Worksheet 3, column (b)						3b
3c	Prior years unallowed losses from Worksheet 3, column (c) (see instructions)						3c
3d	Add lines 3a, 3b, and 3c								3d
4	Add lines 1d, 2c, and 3d. Note: If this line is zero or more, stop here and submit this form with your return; all losses are allowed, including any prior year unallowed losses entered on line 1c, 2b, or 3c. Report the losses on the forms and schedules normally used								4
If line 4 is a loss and: • Line 1d is a loss, go to Part II. • Line 2c is a loss (and line 1d is zero or more), skip Part II and go to Part III. • Line 3d is a loss (and lines 1d and 2c are zero or more), skip Parts II and III and go to Part IV, line 15. Caution: If married filing separately, filing status , and you lived with your spouse at any time during the year, do not complete Part II or Part III. Instead, go to line 15.
Part II – Special allowance for rental real estate activities with active participation
Note: Enter all numbers in Part II as positive amounts (greater than zero). See instructions.
5	Enter the smaller of the loss on line 1d or the loss on line 4								5
6	Enter (if married filing separately, see instructions)						6
7	Enter federal modified adjusted gross income, but not less than zero (see instr.) Note: If line 7 is greater than or equal to line 6, skip lines 8 and 9, and leave line 10 blank. Otherwise, go to line 8.						7
8	Subtract line 7 from line 6						8
9	Multiply line 8 by % (). Do not enter more than . (If married filing separately, filing status , see instr.) .								9
10	Enter the smaller of line 5 or line 9								10
If line 2c is a loss, go to Part III. Otherwise, go to line 15.
Part III – Special allowance for commercial revitalization deductions from rental real estate activities
Note: Enter all numbers in Part III as positive amounts (greater than zero). See instructions
11	Enter reduced by the amount, if any, on line 10. (If married filing separately, filing status, see instr.)								11
12	Enter the loss from line 4								12
13	Subtract line 10 from line 12								13
14	Enter the smallest of line 2c (treated as a positive amount), line 11, or line 13								14
Part IV – Total losses allowed
15	Add the income, if any, from lines 1a and 3a and enter the total								15
16	Total losses allowed from all passive activities for this year. (Add lines 10, 14, and 15. See the instructions to find out how to report the losses on your return.)								16
Caution: File this form and its worksheets with your tax return. Keep a copy for your records
Worksheet 1 – For Form IT-182, lines 1a, 1b, and 1c (see instructions)
Name of activity/property description and address		Date of acquisition	Date of sale	Current year		Prior years	Overall gain or loss
				(a) Net income (line 1a)	(b) Net loss (line 1b)	(c) Unallowed loss (line 1c)	(d) Gain		(e) Loss





Totals. Enter on Form IT-182, lines 1a, 1b, and 1c
Worksheet 2 – For Form IT-182, lines 2a and 2b (see instructions)
Name of activity/property description and address		(a) Current year deductions (line 2a)			(b) Prior years’ unallowed deductions (line 2b)			(c) Overall loss




Totals. Enter on Form IT-182, lines 2a and 2b
Worksheet 3 – For Form IT-182, lines 3a, 3b, and 3c (see instructions)
Name of activity/property description and address		Date of acquisition	Date of sale	Current year		Prior years	Overall gain or loss
				(a) Net income (line 1a)	(b) Net loss (line 1b)	(c) Unallowed loss (line 1c)	(d) Gain		(e) Loss





Totals. Enter on Form IT-182, lines 3a, 3b, and 3c
Worksheet 4 – Use this worksheet if an amount is shown on Form IT-182, line 10 or 14 (see instructions)
Name of activity/property description and address		Form or schedule and line number to be reported on	(a) Loss		(b) Ratio		(c) Special Allowance		(d) Subtract column (c) from column (a)




Totals
Worksheet 5 – Allocation of unallowed losses (see instructions)
Name of activity/property description and address			Form or schedule and line number to be reported on		(a) Loss		(b) Ratio		(c) Unallowed loss




Totals
Worksheet 6 – Allowed losses (see instructions)
Name of activity/property description and address			Form or schedule and line number to be reported on		(a) Loss		(b) Unallowed loss		(c) Allowed loss




Totals
Worksheet 7 – Activities with losses reported on two or more different forms or schedules (see instructions)
Name of activity/property description and address:		(a)	(b)		(c) Ratio		(d) Unallowed loss		(e) Allowed loss
Form or schedule and line number to be reported on (see instructions):
1a	Net loss plus prior year unallowed loss from form or schedule
1b	Net income from form or schedule
1c	Subtract line 1b from line 1a. If zero or less, leave blank
Form or schedule and line number to be reported on (see instructions):
1a	Net loss plus prior year unallowed loss from form or schedule
1b	Net income from form or schedule
1c	Subtract line 1b from line 1a. If zero or less, leave blank
Form or schedule and line number to be reported on (see instructions):
1a	Net loss plus prior year unallowed loss from form or schedule
1b	Net income from form or schedule
1c	Subtract line 1b from line 1a. If zero or less, leave blank
Totals

Recomputing Passive Activity Results for New York

Step 1 — NY-source reconciliation: Start with the activities you reported on federal Form 8582. For each activity, include only income, gains, losses and deductions derived from or connected with New York sources. Summarize rental and non-rental passive categories on the lines provided by IT-182, incorporating any prior-year NY-only unallowed losses.

When line totals are nonnegative: If the combined NY-source passive total is zero or positive, your NY-source passive losses are generally fully deductible up to that amount. Transfer the allowed amount to the applicable New York return schedules (for individuals, typically the nonresident/part-year schedules; for fiduciaries, see IT-205-A).

Step 2 — Rental real estate special allowance: If you actively participated in rental real estate and show a net rental loss, compute the NY-source modified AGI and apply the special allowance on IT-182. The allowance is limited (with a maximum comparable to federal rules) and phases out as NY-source modified AGI increases. If married filing separately and lived apart all year, a reduced maximum applies. Only NY-source amounts are used in this test.

Step 3 — Limitation and allowed loss: After applying any rental special allowance, compare the remaining NY-source passive loss to NY-source passive income. The allowed loss is the lesser of the two. Report the allowed amount on the appropriate lines of your New York return and schedules (for example, business allocation and fiduciary attachments such as IT-203-A or IT-203-ATT, and IT-225 if a modification is triggered).

Unallowed losses and tracking: Any remaining NY-source passive loss is unallowed for the year and carried forward for New York only. Maintain a separate NY-only PAL ledger so that future years reflect accurate opening balances distinct from federal carryforwards and non-NY activities.

Worked example (simplified): You are a part-year resident with a NY rental loss of $30,000 and passive income from a NY K-1 of $5,000 during your nonresident period. After recomputing on IT-182, the NY-source passive total is −$25,000. Your NY-source modified AGI for the special allowance is low enough to permit a $25,000 rental allowance. The allowed loss is then limited by NY-source passive income. If the remaining comparison yields $5,000 of allowable loss, you deduct $5,000 on the NY return and carry forward $20,000 for NY purposes.

Last reviewed: 2025-10-29: If you believe this form requires an update, please contact us.

Planning, Documentation, and Audit Readiness

Keep a permanent file separating NY-source from non-NY passive items by activity: rental ledgers, location proofs, K-1 state apportionments, and allocation worksheets. Maintain a distinct NY-only PAL carryforward schedule that agrees to your most recent IT-182.

Model residency transitions in advance. If you will change residency mid-year, project the IT-182 outcomes for the resident and nonresident periods separately. Coordinate with related schedules such as IT-203-A, IT-203-ATT, and IT-225 to ensure consistent sourcing and modifications.

For fiduciaries, mirror these steps with beneficiary allocations and IT-203-ATT/IT-225 interactions where applicable. Consistent NY-source evidence and line-by-line tie-outs will reduce adjustment risk.

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Frequently Asked Questions

Does IT-203-ATT replace IT-112-R or IT-112-C?

No. Those forms calculate credits for taxes paid to other jurisdictions, and their totals are then entered onto IT-203-ATT where indicated.

How much income can be excluded on IT-221?

You may exclude up to $5,000 ($10,000 for joint filers) of qualifying disability income, reduced by any NY pension or annuity exclusion previously claimed.

Can part-owners of a property claim IT-119?

Yes — if the notice issued reflects the property key and entity ownership, each owner must enter their share of the underpayment on IT-119 and may attach separate forms as required.

Can I use IT-203-B to claim the NY College Tuition Deduction?

Yes. Part 2 of IT-203-B calculates the allowable college tuition itemized deduction or credit, depending on your AGI and tuition amounts paid.

Are HSA contributions deductible for New York tax?

No—unlike the federal system, New York does not allow an HSA deduction.

Important Notes

All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.