PA Schedule E taxes property income in another state

Forum|Forum|2 years ago
February 22, 2024
1 reply
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Hello,

I have two two rental properties, one in PA another in SC. The PA schedule E is taxing the SC property, even though I've clicked 'Property is not located in PA'. This did not happen last year and appears to be a bug. Anyone else seeing this? Is there a workaround? Thanks!

TomD8

Employee

Are you a resident of PA? If so, PA can tax all your income, regardless of its source.

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

TechGuy2Author

Good question, sorry I didn't make that clear. I'm non-resident with an investment property in PA. In years past, TT only taxed the PA property, this year it is taxing both the PA and SC property. I really think its a bug. I'm not sure how to report it. Thanks

TomD8

Employee

Unfortunately I don't have the TT Pennsylvania program on my computer (I'm not a TT employee), so I can't replicate your situation. But it looks like PA wants you to allocate your rental income between PA and Non-PA on PA Schedule NRH, section II.

https://www.revenue.pa.gov/FormsandPublications/FormsforIndividuals/PIT/Documents/pa-40nrh.pdf

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