Hello,
I moved out of Arizona to California in December 2020 and converted my old Arizona house to a rental property. I didn't get a tenant until January 2021. As a result, because of maintenance, depreciation, and other expenses, the property operated at a loss in 2020. I am an active participant, so the passive income losses should be deductible against ordinary income. It seems like the loss could be taxable in AZ (since the income is from AZ) or in CA (since I incurred the expenses after I had moved to CA.) How do I claim those losses on my state tax returns without inappropriately double-dipping?
Thanks!
