Hi professionals,

I run into a case where a client lives in VA all year and have a new rental property in MD. The rental is having a net loss, and it's disallowed on federal return due to higher income.

My question is whether the MD nonresident tax form is showing correctly. On page 2 of MD form 505, the Maryland Income column is all blank. It looks like the passive loss is also disallowed on state level.

If I understand correctly so far, then is it necessary to file a MD tax return in this case? Do I check the box "Not required to file a MD tax return"? 

If my understanding is incorrect, please let me know what should show on Form 505 for the rental loss.

Many thanks for your help!!