Out of State Rental Loss

Forum|Forum|4 years ago
April 11, 2022
1 reply
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I am a CA resident with a short term rental property in AZ that produced income this year.

There is depreciation for the property.

Question : Filing AZ state tax return. Rental Income is 0 for federal due to loss carryover from last year.

Should form 309 be showing any income for the state of AZ AGI broken out?

Should only the depreciation for the property be on the AZ tax form which results in tax amount?

AmyC

Employee

You do need to file an AZ return since you had income there and can claim all rental property expenses - taxes, insurance, maintenance, etc, not just depreciation. If you have taxable income to CA and AZ, they are reverse credit states where AZ gives you the credit for income taxed in your resident state of CA on the same income. Complete your resident state CA tax return before AZ.

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