Client moved from VA to NC in middle of 2009.
Both states have exemptions/etc pro-rated based upon income received while a resident of the individual states.
Virginia part-year resident form (VA 760PY) has been prepared.
Here is the problem: Upon moving, client converted personal residence into rental property. In theory the rental income (it is +) after the move from VA is therefore non-resident income.
The rental income will be taxable to NC, and of course also taxable to VA. (NC would allow an offset related to taxes paid to VA on such income.)
Since non-resident VA income is normally handled on VA 763, what is the solution?? Is it in any way possible to slide all of the rental income onto the VA 760PY??
Suggestions??
Actually, a similar (reverse) issue may potentially arise with the NC return, with non-NC income prior to the move, and more non-NC income (but while a legal resident of NC) after the move.
Thanks in advance!
FE
Both states have exemptions/etc pro-rated based upon income received while a resident of the individual states.
Virginia part-year resident form (VA 760PY) has been prepared.
Here is the problem: Upon moving, client converted personal residence into rental property. In theory the rental income (it is +) after the move from VA is therefore non-resident income.
The rental income will be taxable to NC, and of course also taxable to VA. (NC would allow an offset related to taxes paid to VA on such income.)
Since non-resident VA income is normally handled on VA 763, what is the solution?? Is it in any way possible to slide all of the rental income onto the VA 760PY??
Suggestions??
Actually, a similar (reverse) issue may potentially arise with the NC return, with non-NC income prior to the move, and more non-NC income (but while a legal resident of NC) after the move.
Thanks in advance!
FE
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