How do I properly report my earning for an out-of-state rental property (I live in CA, but my rental is in CO)?

[mcmhendricks]

If I already entered it in my Federal taxes, does this apply to the CA taxes too or just CO? The CO property is showing in my CA state taxes section and I don't know if it needs to.

[AmandaR1 · Accepted solution]

That's correct. Your nonresident return for CO will report the rental activity. Be sure to update this state first. Then, your CA resident return, has claim to all of your income, including the CO rental. However, CA will give you credit for the taxes you pay to CO (if any). You must update your resident return last for this to calculate correctly. 

[mcmhendricks]

If I already started but did not finish my CA return, but I go in and complete my CO one and then go back to complete my CA one, will the return pick up on that in the system?

[AmandaR1]

You need to "Delete" the return, from the state taxes tab; you'll find delete right next to Edit. Then, add CO and complete it and then CA.

[mcmhendricks]

Great! If I already did CO, can I just delete CA? Or delete both and redo both in the CO to CA order?

[AmandaR1]

No need to delete CO. It's the CA return that needs to be last, but do make certain the CO is nonresident before moving onto CA. If you edit the state, the first screens will cover the return type.

[mcmhendricks]

Ok great, thank you!

[AmandaR1]

You're welcome. Glad to help!