@dpa500 so here is the issue.
You are required to pay tax on income EARNED in VA or SOURCED in VA. Even though you now live in FL, you are still required to pay tax on the rental income in VA because it was SOURCED in VA.
1) complete the PART YEAR VA tax return. (form 760PY) You want to report all the income you earned in VA during the time you lived there. Sounds like what you do NOT report is the capital gains (because you sold the assets while a resident of FL) and the rental income and related expenses that occured after you moved from VA.
2) then complete the NON-resident VA tax return. (form 763) You must report the rental income (and related expenses) that occured AFTER leaving VA. This is the ONLY income that should be reported on this form. This is VA sourced income and you would need to report this to VA not only this year but for as long as you own this VA property.
3) the rental income on the Part Year return plus rental income the non-resident return should equal what you reported on the federal tax return.
<<It is confusing, because I need to allocate that rental income but I believe as a non resident and not as a part year resident.>>
you are correct. and it's confusing because you moved from VA, but still have VA sourced income.
4) if TT doesn't let you do both the form 760PY and 763, then I would let TT file form 760PY. Then get a copy of form 763 from the VA revenue website and do it by hand - it is not that hard. just go slow.
does that help?
