Skip to main content
June 4, 2019
Solved

I have rental property in Indiana, but I live in California. My taxes due are incorrectly being placed in my California taxes. How do I fix this?

  • June 4, 2019
  • 1 reply
  • 0 views
I'm entering my income in the business section.
Best answer by TerryA

As a Calif resident, Calif gets to tax your world-wide income - it doesn't matter where it comes from. So the IN rental income is properly included. Indiana gets to tax that rental income as well. Prepare your Calif return first, then the nonresident TT/Indiana return so that TT/IN can get some of the information it needs to prepare the other state tax credit for some of the Calif tax on that rental income to help prevent double taxation.

1 reply

TerryAAnswer
Employee
June 4, 2019

As a Calif resident, Calif gets to tax your world-wide income - it doesn't matter where it comes from. So the IN rental income is properly included. Indiana gets to tax that rental income as well. Prepare your Calif return first, then the nonresident TT/Indiana return so that TT/IN can get some of the information it needs to prepare the other state tax credit for some of the Calif tax on that rental income to help prevent double taxation.