It appears I've made an oversight for the last few years. I had a rental property in different state than I live in. The property had little net income over the last few years (<$5k). Each year when preparing my taxes in TurboTax, I think I would see a message saying something along the lines of: You may need to file a return in another state. And I expected that TurboTax would actually prompt me to add that state return along the way if necessary. I was never prompted, so I never added the state return for the state the property is in.
I'm guessing this means that the income (and loss) from the out-of-state rental was just being applied to my home state each year. And I'm guessing now that maybe I needed to manually add the return for the state of the property?
Well, now I've sold this property and made some money on the sale. And I guess it was more clear to me this year that I might be filing a return for that state, so I selected that state during the initial interview. This time around, TurboTax did prompt me to file a return for that state.
So I think my question is: Is there anything I should consider doing in that state besides just filing my return this year?
Thanks!
