Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
mtclements
New Member

Do I need to file a partnership return in two different states if my partnership has rental income from two different states?

I am a NJ resident preparing my state partnership returns and have rental income from two different states (NJ and NC), do I need to prepare a partnership return in each of those states or just record the K-1 income on two different individual returns, NJ resident and NC nonresident?

1 Best answer

Accepted Solutions
JulieCo
New Member

Do I need to file a partnership return in two different states if my partnership has rental income from two different states?

If the partnership has property and rental income in both states, then the partnership needs to file returns in both states.   Because the income of the partnership flows through to the partners, this also means that the partners will also have to file returns in both states to report the income and pay taxes on it (non-resident returns if partner lives in another state.)


Per NC Department of Revenue: 

Every partnership doing business in North Carolina must file a partnership income tax return.  https://files.nc.gov/ncdor/documents/files/d403a_web.pdf


Per NJ Division of Taxation:  
Every partnership that has income or loss derived from sources in the State of New Jersey, or has any type of New Jersey resident partner, must file Form NJ-1065. A partnership must file even if its principal place of business is outside the State of New Jersey. https://www.state.nj.us/treasury/taxation/pdf/current/part/1065i.pdf



View solution in original post

2 Replies
JulieCo
New Member

Do I need to file a partnership return in two different states if my partnership has rental income from two different states?

If the partnership has property and rental income in both states, then the partnership needs to file returns in both states.   Because the income of the partnership flows through to the partners, this also means that the partners will also have to file returns in both states to report the income and pay taxes on it (non-resident returns if partner lives in another state.)


Per NC Department of Revenue: 

Every partnership doing business in North Carolina must file a partnership income tax return.  https://files.nc.gov/ncdor/documents/files/d403a_web.pdf


Per NJ Division of Taxation:  
Every partnership that has income or loss derived from sources in the State of New Jersey, or has any type of New Jersey resident partner, must file Form NJ-1065. A partnership must file even if its principal place of business is outside the State of New Jersey. https://www.state.nj.us/treasury/taxation/pdf/current/part/1065i.pdf



View solution in original post

jhobryan
Level 2

Do I need to file a partnership return in two different states if my partnership has rental income from two different states?

 
Dynamic AdsDynamic Ads
Privacy Settings
v