DanielV01
Expert Alumni

Investors & landlords

In KY and the state where the property is located.  Your resident state taxes all of your income regardless of where it comes from.  Thus, any positive income must be reported to Kentucky (a loss is also included as a loss for KY income as well).  If your Arkansas property generated income, you will also need to file an Arkansas return (I will not comment about Florida.  Florida has a tangible property return for those who have rental property, but for more information, click on this link:  Tangible Personal Property Tax - Florida Department of Revenue).  

Kentucky will tax all rental income, but will also give you a credit for the amount of tax you must pay to other states on the rental income generated in the other state.

Caveat:  Florida's Tangible Personal Property Tax return is not an income tax; therefore, it likely needs to be treated as a property tax deduction towards the rental income generated in Florida (tangible property tax paid in 2017).  This amount would be included in Schedule E, which will transfer to the KY return.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post