- Should I work on Oregon non-resident tax first, or California resident tax first?
You should always do the "resident" state return LAST. I'm sure that OR and CA have a reciprical tax agreement of some sort, and this is the only way the program can "correctly" take such an agreement into account. When you complete the CA return last (your resident state) your CA tax on that rental income (or consideration for loss) will be taken into account and your CA tax liability on that specific income (or credit for loss) will be figured.
- Do I have to pay tax only in Oregon, or both California and Oregon?
Depends on the tax agreement. I could be a reduction in your CA tax liability on that income based on the difference in tax rates (if any) between the two states. Or it could be a split of some sort between the two states. Or it could be no CA tax on that income with full OR tax on it. It just depends. But if you do the resident state tax return last, the program will correctly take any reciprical tax agreement into account.
For this reason, *DO* *NOT* file *ANY* tax return, until you have completed *ALL* tax returns and are satisfied with the results.
- How to handle carry-forward passive loss ?
The program will deal with that for you usually. When you start working on the specific property that has the carry forward losses, be sure to check the box to indicate you have passive losses from last year, in the Property Profile section. If I recall, the program will then ask you to enter the losses, which you get from the prior year's IRS Form 8582. Just make sure you enter the loss from "that" specific property on the 8582, and not the "bottom line" total carry forward losses on all properties.
