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State income allocation for house rental.

I live in N.C. all year, but rented a house I own in VA. 

Is the income reported allocated as NC, or VA?

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2 Replies

State income allocation for house rental.

you file a nonresident return for VA reporting just the rental activity

for NC, your resident state, everything gets reported including the rental in VA

if you pay VA income tax on the rental NC gives a credit for the double-taxed income. 

in Turbotax, you must do the non-resident state first so the correct credit is calculated for NC 

State income allocation for house rental.

Thanks for the detailed explanation.

These taxes get so complicated..... 🙂

 

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