Out of state tax form for rental

[envelop5-e]

I have an out of state rental property in kentucky. After expenses,  I have a net loss of (2568). On kentucky's form under "rental real estate" do i insert -$2568 or the actual rent received? (There's an existing answer but it doesnt clarify which figure to enter). 2 pages further, TT asks for gross receipts. Since my only operation in KY is the one rental property, I ignore the gross receipts box?

[envelop5-e]

thanks ttaxdanielV. Clarification, my net loss on my fed return is limited due to my magi. Ky form 740-np line 11 column A asks for rents from the federal form, which is -$2568.  Column B asks for Ky rents. Do I also enter the -$2568 here or do I insert the actual larger net loss dollar amt?

[DanielV01]

This question asks the KY amount if you have several rentals in multiple locations.  If you have but one, you use the same number, -2568.

[DanielV01 · Accepted solution]

You report the net loss.  This is the income that you received from your KY return:  a rental loss.  You will not have to pay tax, but it does seem you need to file.  Here is a quote from the Instruction Manual for the KY Nonresident Return:  

WHO MUST FILE FORM 740-NP—Form 740-NP must be used by full-year nonresidents who had income from Kentucky sources and by part-year residents who had income while a Kentucky resident or from Kentucky sources while a nonresident.  These persons must file Form 740-NP if (1) they had any gross income from Kentucky sources and gross income from all sources in excess of modified gross income for their family size, or (2) Kentucky gross receipts from self-employment in excess of modified gross income for their family size. See Chart A on page 5. (Italics added)

The amount you received for rent constitutes gross income, while your income after your expenses are calculated in is your net income (in this case a loss).  You will report the loss, and your KY return will include an attachment copy of the Federal Return including Schedule E which documents your gross amount received, minus your expenses, to arrive at your loss.

[victor011]

Hi,

   I have rental property in Kentucky but i am a Ohio resident. What's the tax rate for rental income earned in Kentucky for out of state residents?

Thanks

[Critter-3]

Rentals rarely run at a profit so the tax rate is immaterial however the KY return should still be filed to preserve the passive loss for the future. 

[Hal_Al]

Q. What's the tax rate for rental income earned in Kentucky for out of state residents?

A. Simple answer 5%

KY is one of the few states with a single tax  rate.  The form will make you go through a ratio calculation of KY income to all income. But it works out to 5% of the net taxable income.  Net taxable income may not be your net rental income. 

[DanielV01]

@victor011 One other thing:  if your rental did have make a profit, you could also have a KY Local tax as well, depending on the KY municipality.  You might want to check with the locality.

KY localities charge tax if you derive income from the locality, whether working, or in this case, a rental.  

[victor011]

Thanks, DanielV01. This was helpful

[victor011]

Thanks