Yes but only if you have rental income in your nonresident state where the property is located. For any taxes paid to this nonresident state, you will be allowed a resident state tax credit.
If you have nonresident rental losses and this is your only source of nonresident income/loss, you have no filing requirement in that nonresident state. However, you may want to consider filing a return anyway so that you can establish with your nonresident state that the rental property produced a passive loss (which can be carried forward and used against future passive income).
You will still need to include your rental activities (income or loss) on your federal and resident state tax returns.
Yes but only if you have rental income in your nonresident state where the property is located. For any taxes paid to this nonresident state, you will be allowed a resident state tax credit.
If you have nonresident rental losses and this is your only source of nonresident income/loss, you have no filing requirement in that nonresident state. However, you may want to consider filing a return anyway so that you can establish with your nonresident state that the rental property produced a passive loss (which can be carried forward and used against future passive income).
You will still need to include your rental activities (income or loss) on your federal and resident state tax returns.
@TurboTaxDeeS I have a rental property in NJ starting December 2017 only. And have net losses on it at the end of December 2017. How do I account for them in my non-resident state return? Will the loss stated on non-resident return be carried forward too or just the federal ones are carried forward?
I was a resident of NY when I filed my 2016 return via TT. I'm now noting that rental property income earned in Calif is also showing as income on my NY sdtate return. How do I ammend?
When filing nonresident rental “income” on turbo tax it asks for income in that state only. Is it asking for NET income (minus expenses) that were previously input into the federal return?
Sounds like this is the case.
Just want to make sure this is not meant to be “rent received”
Thanks
Hi, i have a similar scenario. Did you find out if you are meant to enter new income (loss)?
Thanks
Enter everything (income an expenses) from the rental on your federal return and when you go through the state return, TurboTax will give you the option to allocate the net income or loss to the appropriate state.
Here are the instructions for filing a nonresident return. Prepare the nonresident BEFORE your resident state. And be sure to note the rental state in the Personal Info section...All of that is detailed in the link!
I am using the online version of TurboTax. I had a net loss on a rental property in another state where I am a non-resident. In the interview process, TurboTax prompts me for other kinds of income (W2, interest, dividend), but not rental income. How can I allocate rental income (or loss) to the correct state in the online version?
If you have no other income to report in the non-resident state, you probably don't need to file a return there. Rental loss can only be used against other rental income in most cases.
Every state has its own rules regarding nonresident returns. For example, nonresidents with more than $33 in Pennsylvania-sourced income must file a return, while nonresidents with less than $600 in Missouri income don't have to file.
If you're not sure, your best bet is to contact the Department of Revenue in that state, or visit their website. Most state websites have a section devoted to nonresidents and part-year residents.
In TurboTax Online, you can indicate in the MY INFO section that you 'made money in other states'.
However, you may want to confirm that you actually need to file there before paying to add a state to your return.
Click this link for more info on Why Would I File a Non-Resident Return.
Thanks for your quick help. I also have W2 income in this state, so I do need to file. My question is that the interview process never asks me about rental income, so how to I add it to the state where I am a non-resident using the online version of TT?
You don't mention which state you are filing a Non-Resident return in.
You may need to report all rental income and expenses, to have the rental loss calculated, or TurboTax may have carried over the Schedule E from your Federal return to your state, since the property is located there.
The only way to see all your state forms in TurboTax Online is to pay for your return and download the PDF copy with worksheets to review. You may be able to tell from the amount in the State Refund meter whether the rental loss has been applied.
Your best bet would be to look at the state's website for Non-Resident filing instructions.
That should tell you whether it can be used against your W-2 income there, or has to be carried over to be applied to future rental income.
Click this link for more discussion on Non-Resident Rental Property.
I DO want to report the rental income in the non-resident state where the rental property is located and where I also have W2 income. However, Turbo Tax is not including rental income as an option in the state interview questions. So, is this a bug, or is there a way around it, for example by using the desktop version of Turbo Tax where you can access forms directly? I don't want to pay for Turbo Tax if Turbo Tax can't handle this scenario.
@kfg You need to enter the rental income in the federal section of TurboTax, then it will flow down to your state return.
I'm not sure what desktop version of TurboTax you are using, but you should be able to type in "schedule E" in the Search Box on your menu bar and you should get a "Jump To" option that will take you to the rental entry screens.
Hello Everyone. I have 2 rental properties. one in NC and one in CA. I aggregate all properties and total schedule E income is 0; but I have made $1200 profit from the NC rental property which being offset by the loss from the CA properties. I am a resident of CA with just this rental in NC. Do I need to file tax return with the state of NC?
Yes, if you own Rental Property in another state, you need to file a Non-Resident return for that state. Prepare your North Carolina return first, reporting just your North Carolina income. When tax is calculated, you will get credit for tax paid to your resident state.
Here's How to File a Non-Resident State Return and details from North Carolina Dept. of Revenue.
Dear Turbotax team, I am PA resident. Received rental income from abroad (europe) and paid taxes in that country. Should I report this income as taxable to PA state or as rents received from real estate located outside Pennsylvania, such rents are allocable to the jurisdiction where the property is located. And so not taxable in PA? please advice!
thank you
You should report the income as PA source income.
As a resident of Pennsylvania your income from all sources inside and outside of Pennsylvania is taxable and reportable.
If you did not maintain a permanent abode in Pennsylvania or spent less than 183 days in Pennsylvania only your income from a Pennsylvania source is taxable and reportable.
On you Federal you might be able to claim Foreign Tax Credit for taxes paid to the foreign country.
To claim the credit in TurboTax: Where do I enter the foreign tax credit (Form 1116) or deduction?
Thank you for the links.
But my understanding was that Rent income is considered a different income that has to be reported but not taxed IN PA based on this information: https://www.revenue.pa.gov/FormsandPublications/PAPersonalIncomeTaxGuide/Pages/Income-Loss-Rents-Royalties-Copyrights-Patents.aspx#:~:text=Allocation%20or%20Apportionment,as%20rental%20income.
It says it is not allocable to PA. if it is located outside of PA
In general, you report the income in your home state and on the state(s) where you work. This property in Europe is, in a sense, where you work (yes, I realize how complex that is). So you report it in both places.
So, how do you normally avoid double taxation? Simple, when you pay tax in the European country, you declare this tax on form 1116, which acts as a credit for US taxes.
Of course, we are speaking of Pennsylvania, not the US. While the system I describe above works for most states, it no longer works for Pennsylvania. Pennsylvania says, "Note: Act 2013-52 effective Jan. 1, 2014, eliminated the resident credit for personal income tax paid to foreign countries." See page 4 of PA PERSONAL INCOME TAX GUIDE DEDUCTIONS AND CREDITS.
So the issue is that the PA legislature eliminated the ability for you to avoid double taxation on your foreign rental property.
The quote you gave above in toto (as a whole) is "Allocation or Apportionment of Rents and Royalties from the Extraction of Minerals or from Copyrights and Patents". That is, for the extraction of minerals or from Copyrights and Patents. And your real estate in Europe is neither. So your quote does not apply.
A resident of Pennsylvania "is taxed on all of his or her taxable income whether it is received from sources inside or outside Pennsylvania." See How Residents are Taxed.