Client lives and works in California, formed an LLC in NV for rentals, and rental property is located in Indiana. Wouldn't an Indiana return need to be filed for the rental income?
-
-
Yes
If any income is received in a state that has a state income tax, you must file a tax return for that state for the income received there.
When I went to the Georgia EA seminar in 2006, one of the topics was state taxes. Very interesting.....I learned there that not filing a state return and reporting the depreciation could have a negative effect on the tax return that would have to be filed when the property was sold....having to claim the depreciation allowed even if it had never been taken because returns had not been filed.
I have a client that has a rental property in Arizona. When I told him he had to file a state return, he wasn't happy and really didn't want to do it. But I told him that was the law and I would have to do the return and explained the consequences to him down the road. He reluctanly agreed to file.
Linda F -
Rental Income
My mind is tired tonight so I appreciate your confirming. I thought an Indiana return should be filed, but previous tax preparer did not file an Indiana return, only CA, so I thought there might be an exception I was unaware of. Thanks for the input!Comment
Comment