California will tax you on all income but may give you a credit if you paid taxes to other states. if you paid Utah taxes for that rental property then a credit is allowed for net income taxes paid to another state . The credit is applied against California net tax less other credits.
if you paid income taxes on the property in Utah, you will report this in your California return. As you navigate through your return you will eventually reach a page that says "Take a look at California credits and taxes" Underneath are some selections and you will make the selection that says Other State Tax Credit. Here is where you will record your tax paid to Utah regarding your rental property.
To determine the tax paid, you will need to prepare your Utah non-resident return first reporting income from your rental property and then prepare your California state resident return.
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