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I have a commercial rental property in one state but the LLC that owns it is in another state. Turbotax is asking me to "pick the state with the most earned income.:

Which is that state? The LLC state or the physical location of the commercial rental property.
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1 Reply
PatriciaV
Expert Alumni

I have a commercial rental property in one state but the LLC that owns it is in another state. Turbotax is asking me to "pick the state with the most earned income.:

If the rental property generates the majority of income for the LLC, choose the state where that income is generated. However, if the LLC has other sources of income in the state where the LLC operates, choose the home state instead.

 

In either case, the LLC will need to file a nonresident state tax return for the out-of-state income.

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