Rental Income

[KC-CPA]

Easy quick question. Is Rental Income ALWAYS (or almost always) applicable to the state the property is located in?

[oceanlovin'ea]

Quick answer - most of the time

If you have rental property in state other than the one you reside in, you must file a state tax return for that state (if they have state income tax). Whatever state income is received in, a state tax return must be filed....whether rental property, wages, self employment income,

Linda

[BP.]

Whatever state income is received in, a state tax return must be filed....whether ... wages....

OP only asked about rental income, but in the case of wage income, may not need to file non-resident state return if reciprocal with resident state.

[KathMorgan]

It depends

It depends on the state they live in, the state where the rental property is and if there is a gain or a loss on the rental property. I have clients who are legal residents of LA but have rental houses in MD, FL, TX, and IL. They file everything on the LA, there are no state taxes in TX or FL, the MD and IL returns are only filed if there is a gain over the minimum filing requirement for the state in that year.

[Lion]

File

I always file the NR return for the state where the rental is located. Those carryover losses will be released -- and help your client -- when he sells the rental and that state wants to grab its taxes on the profit.

[BP.]

I always file the NR return for the state where the rental is located. Those carryover losses will be released -- and help your client -- when he sells the rental and that state wants to grab its taxes on the profit.

Yes, even if a loss, I file NR's for rentals