If I live and work in WA (no income tax) and bought a property in NC and rent it out, do I pay tax to NC on the income I made in WA.

[superlyc]

If I live and work in WA, would I just need to pay the tax to NC on the part of rental income I make in NC, not on anything else?

[DanPaul02]

You pay NC on the money you made in NC.  You do not pay NC for the income you made in Washington state.

[Critter-3]

Even if the NC return is a loss you NEED to file the return to preserve the loss.  

[superlyc]

Thanks

[superlyc]

Thanks. Yes I should file return with NC. But just try to make sure my income from WA will not be taxed in NC if I have an investment property there.

[Critter-3]

When you file a NON resident NC return ONLY the NC income is taxed on the NC return ... however rentals usually run at a loss due to the depreciation you MUST take it is not an option or a suggestion.  

[superlyc]

Thank you. But if no other income in NC and I file a tax return with loss, what does it mean? I basically do not need to pay the NC state and they do not need to pay me either, right?

[Critter-3]

RIGHT ...  but you need to file to preserve the loss for the time you sell the property.   If you will not do some investigating yourself may I suggest you sit down with a local tax pro and ask these tax planning questions so get educated on what, how and why.