How to enable rental tax for California if rental property is in a state with no income tax.

Question

Hello. I have a rental property in Texas, which has no state income tax. However, I am a resident in California, which requires rental property to be filed as part of my income.

I cannot seem to be able to configure this directly. Is there a way for me to adjust to add rental income to be recognized in the California state tax file(s)?

CoryF · Answer

Hello

All Federal Adjusted Gross Income items are transferred to your Full-Time resident state after finishing the Federal filing screens. This would include the Rental Income in the form of Passive profit or loss. However, if you don't show a profit or loss based on past year activities in regards to passive loss limitations, then you will still show a $0 profit from the Rental on your Federal return. There would be no need to worry about reporting the specific Rental income or loss on the CA return.

All of the Federal AGI income will transfer to the CA state return with the correct calculation of CA taxes owed on that income.

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