Rental Real Estate California amount

[dwbeacon]

Hi,

In State Income section "Rental Real Estate, Royalties, etc.", it says"Enter your profit or loss from rents that are related to property located in California, while you were a California nonresident. If none, enter zero.

I have a rental property in California, but I lived entire 2016 outside of CA. Should I put zero for California amount?

[TerryA · Accepted solution]

No, a rental property located in Calif is Calif-source income and is taxable by Calif whether you live in Calif or not. You need to enter the amount of the profit/loss of all California rentals.

[dwbeacon]

Thanks Terry

[scraptag]

so income minus expenses, etc?

[agulati]

Should i subtract property tax from the Rental Income and then enter that?

[Critter-3]

First you fill in the rental info on the  Sch E in the federal section .... then when you get to the CA interview it asks how much of the amount in the Federal column belongs to CA ... if you only have a CA rental then all of the amount from the fed column is put in the CA column which can easily be a zero since rentals often run at a paper loss. 

[agulati]

I do have a TX rental so not sure if i understand when you say i can enter 0.

Is that the Rental Income - Property Tax - Mortgage?

Thank you

Aman

[BrittanyS]

Yes, you can deduct property taxes from rental income.  Since you also have TX rentals, you will need to enter the allocations from CA rentals and the TX rentals in the section that asks how much in the Federal column belongs to CA income. You will only enter zero if the amount in the Federal column is from TX rentals only and your Federal Rental Income from CA was zero. 

@agulati