I Live in CA 3 months of the year. I own a condo there which I rent out but the income is less than my mortge so I have no positive proceeds. Do I have to file CA return?

[ttsebstar]

With negative net income it seems I don't need to file in CA. Right?

[Carl]

Yes, you have to file a CA return to report your CA produced income. Take note that it is not common for rental property to show a profit on paper at tax time.

Also, you probably do "in fact" have a positive cash flow, since the principle part of your mortgage payment on the property is not deductible. The taxabiilty of that cash flow is most likely offset by the depreciation you are required to take by law.