Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 1, 2019 2:25:07 AM

I live in California but have rental property in Texas. Why do I need to file state business income tax in Texas this year?

0 2 3253
2 Replies
New Member
Jun 1, 2019 2:25:08 AM

Any income earned within a state is subject to taxation, regardless of where you live. Since you don't reside or work in TX, rental property is considered a business entity, held and used for profit. If you lived / worked in the state for part of the year, you would be liable for personal income tax and could file the rental income as part of that return. Bottom line; if someone is making money, the government wants their share,

New Member
Jun 1, 2019 2:25:10 AM

What if the income is going into a residual trust?