Which state to enter farm rental income.

[tax2xat]

I permanently reside in one state but own farmland in another state.  To which state do I file income tax for the rental income on that farmland?

[SharonD007]

It depends on what state you live in and what state your farm is in.  Please clarify and provide more information.

[tax2xat]

I live in CA full year and the farmland is in CO.  I rent out the vacant farmland for a share of the crop.  This year I had more expenses than income.  Do I file CO tax, whether I have gain or loss?

[Mike9241]

you file in both states (CO as a nonresident). only the rental income is reported for CO. As a resident of CA, your also taxed on that income but receive full or partial credit for the income taxes on the rental owed or paid to CO for 2023

[whoop90]

Where in TurboTax do I indicate that my farm income came from a non-resident state?

[PaulaM]

Indicate in the My Info section that you made money in another state. Enter your Farm Income on the federal side. Then complete your non resident return before your resident state. The total income will flow to your non resident income and then you allocate the appropriate amount to that state. 

Whatever non resident state taxes you pay, you will receive a credit on your resident state tax return.

[rkrawczyk]

I have this same question. I live in Arizona and have farm income from Illinois. The income is disbursed to an LLC my brothers and I formed, with each of our trusts being the beneficiaries. My trust was formed in Illinois. But I am a full-time resident of Arizona. Thanks in advance!

[PatriciaV]

You have income from Illinois, so you'll need to file a nonresident Illinois tax return. Only the trust income is reported for Illinois. You may receive credit for Illinois taxes on your Arizona resident return.

@rkrawczyk