Live in Nevada, own a home in Colorado. What do I need to do tax wise?

Forum|Forum|1 year ago
November 4, 2024
3 replies
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I just moved to Nevada, and own a home in Colorado. I have a friend living in the home in Colorado and I make no income on the rental.

Tax wise, what do I need to do? I still have Colorado residency now.

Not A Product Question

TomD8

Employee

See @xmasbaby0 's answer below.

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

lamc9507Author

What about anything with rental property taxes? Do those even exist in Colorado?

xmasbaby0

Employee

If you moved to NV in 2024, you will still have to file a part-year state tax return for CO for 2024 and pay CO on income received while you lived in CO. NV has no state income tax, so there will be no state tax return for the part of the year that you live in NV. If you are not collecting rent for the home you own in CO, then there is nothing to enter about that unless you are itemizing deductions such as mortgage interest, property tax and loan origination points on your federal return.

https://ttlc.intuit.com/questions/1901227-how-do-i-file-a-part-year-state-return

https://ttlc.intuit.com/questions/1901560-how-do-i-file-if-i-moved-to-a-different-state-last-year

https://ttlc.intuit.com/questions/2895983-how-do-i-allocate-split-income-for-a-part-year-state-return

https://ttlc.intuit.com/questions/1901267-which-states-don-t-have-income-tax

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

rjs

Employee

You said "I just moved to Nevada" and also "I still have Colorado residency now." Those are conflicting statements. If you moved to Nevada you are no longer a Colorado resident. You are a Nevada resident. Owning a rental property in Colorado that you don't live in does not make you a Colorado resident.

It's not clear what you mean by "I make no income on the rental." If the tenant is paying rent, but you do not have a net profit on it, you still have to report the rental income and expenses on your federal and state tax returns. It doesn't matter that the tenant is a friend. The rent on a house in Colorado is Colorado-source income, so you have to report it on a Colorado tax return for the entire year, even after you moved. (I don't know if Colorado allows you to report the resident and nonresident periods on a single return, or if you have to file two separate returns.)

You might want to consult a tax professional in Colorado to make sure you are handling everything correctly.

hbl3973

Employee

Colorado does have part-year resident tax returns. You file the regular DR 0140 and include, in addition to any other schedules, DR 0104PN to show the split of income between CO and the other state and to calculate the proportionate tax due to Colorado.

Colorado does have a special Senior Housing Credit for 2024 which is available for part-year residents. The requirements are that the taxpayer and/or spouse are 65 or older at the end of 2024, do not already have a property exemption for living there for 10 or more year, and don't make more than $75K AGI ($125K for joint returns). The max is $800 which tapers down to zero at the AGI limit and the amount of the credit for part year residents is reduced proportional to the income from CO.