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April 16, 2023
Question

I am a CA resident but cash rent IA farmland. The rent on this affects my CA taxes but I believe it should not. Is that correct? What adjustment is needed?

  • April 16, 2023
  • 1 reply
  • 0 views
what adjustment is needed to remove IA farm cash rent from CA taxes?

1 reply

hbl3973
Employee
April 17, 2023

nelsonga100,

 

Sorry, but California taxes all income earned while you are a CA resident so that includes the IA farmland. If, as I suspect, you are also on the hook to IA on that same income, you get to claim a credit against your CA tax bill for the income tax you pay to IA.

April 17, 2023

Thank you for the response. I was afraid that was the situation. Do you know how I claim the credit for the IA tax bill?

hbl3973
Employee
April 17, 2023

Go into the CA state return and select Credits and Taxes.  Then select Other State Tax Credit.