Investors & landlords
Am I understanding your situation correctly? If I am not understanding correctly, please advise.
You are a resident of state A and you own one or more rental properties in state B, a nonresident state. Some portion of your rental proceeds have been reported to you on an IRS form 1099-K.
If the above is correct, state B has a claim on the rental income within its borders. State A will also claim the rental income as your resident state. State A may allow a credit for taxes paid to another state.
You may consider reporting the IRS form 1099-K within the rental activity. You may consider reporting under Cash, check, and electronic payments rather than Form 1099-K if you believe that the entry is disrupting your tax return.
