I am an LP in a Delaware LLC that owns property in Nevada (no state income tax). This is through a crowdfunding site (RealtyMogul). The K-1 that I received has a physical address in California and included a CA K-1 state tax form. I am a nonresident of California living in Tennessee (also no state income tax). Do I have to file state income taxes for California? If so, can you please explain why?
My understanding is that the rental income is taxed in the state where the property resides (Nevada) or taxed in the owner state of residence (Tennessee). If I do have to pay CA state taxes, I would just say buyer beware about crowdfunding real estate.
