I have rental property in another state. do I need to file in both that state and my state of residence?

Forum|Forum|6 years ago
June 7, 2019
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Best answer by DS30

Yes but only if you have rental income in your nonresident state where the property is located. For any taxes paid to this nonresident state, you will be allowed a resident state tax credit.

If you have nonresident rental losses and this is your only source of nonresident income/loss, you have no filing requirement in that nonresident state. However, you may want to consider filing a return anyway so that you can establish with your nonresident state that the rental property produced a passive loss (which can be carried forward and used against future passive income).

You will still need to include your rental activities (income or loss) on your federal and resident state tax returns.

DS30Answer

Employee

Yes but only if you have rental income in your nonresident state where the property is located. For any taxes paid to this nonresident state, you will be allowed a resident state tax credit.

You will still need to include your rental activities (income or loss) on your federal and resident state tax returns.

taxuser

@TurboTaxDeeS I have a rental property in NJ starting December 2017 only. And have net losses on it at the end of December 2017. How do I account for them in my non-resident state return? Will the loss stated on non-resident return be carried forward too or just the federal ones are carried forward?

AmirD

Hello Everyone. I have 2 rental properties. one in NC and one in CA. I aggregate all properties and total schedule E income is 0; but I have made $1200 profit from the NC rental property which being offset by the loss from the CA properties. I am a resident of CA with just this rental in NC. Do I need to file tax return with the state of NC?

mglauner

Yes, if you own Rental Property in another state, you need to file a Non-Resident return for that state. Prepare your North Carolina return first, reporting just your North Carolina income. When tax is calculated, you will get credit for tax paid to your resident state.

Here's How to File a Non-Resident State Return and details from North Carolina Dept. of Revenue.

@AmirD

user14363133

Dear Turbotax team, I am PA resident. Received rental income from abroad (europe) and paid taxes in that country. Should I report this income as taxable to PA state or as rents received from real estate located outside Pennsylvania, such rents are allocable to the jurisdiction where the property is located. And so not taxable in PA? please advice!

thank you