I have a similar situation. I sold a rental condo in FL which I bought in 2014. For some years, my operating loss was limited $25,000 in each year. This has accumulated to a total "suspended loss" of about 50,000 over the years I owned it
TT reports this and accounts for it fine on Federal Return.
But on Massachusetts return, this suspended loss seems to be disallowed (I tried and failed to find info on this with a lot of searching so it may be this is the Mass. law). The net effect is that this $50,000 is considered Sched D income, which in MA is taxed at 5.1%. thus increasing my liability by $2550.
Can anyone with knowledge of MA rules shed some light on this?
