Question

Arizona property rental income for California resident

Forum|Forum|5 years ago
July 6, 2020
1 reply
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Hi, I am a resident of California and lived in California a entire year. I have a property in Arizona which I am renting out and it is managed by a property management company. Do I need to claim the rental income as AZ income or CA income? CA is considering this income as CA income so if AZ charge tax for this income, it could be double taxation?

T

TomD8

Employee

The rental income is taxable by both states, but AZ will give you a credit for the taxes paid to CA on that income. So in effect you won't be double-taxed. In TurboTax, complete your CA return before you do your AZ return, so that the credit gets calculated properly.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.