Filling in 2nd state (where I don't live in but own a rental property). Under Oregon Source Income and Adjustments, should I enter Net or Gross? Fed lists a neg value.

[tevryan]

Eg. should I just enter the total, un-adjusted rental income, or the amount after deductions from the Federal form, which is actually a negative number?

[DanielV01 · Accepted solution]

Enter the net amount attributable to your property in that state.  For instance, if your Oregon Property had a 10,000 net, whereas your other state's property was a 5,000 loss, your Oregon rental amount is 10,000.  If your Oregon rental property is a loss, and you have no other Oregon income, you are justified in not filing an Oregon return (as you have no income to report). Even if this is the case, however, you may still choose to do so to keep the state's records updated and to avoid answering questions later on as to why you did not file an Oregon return if in prior years you have filed one.

[angiedu]

Daniel, thank you so much for your earlier answer. If I have not filed for Oregon tax before, and my vacation rental is still net loss, I believe that I do not need to file an Oregon tax as you explained below.  But this website indicated Gross rent, do you think that meant the rent before expense?  Just want to double check!

Thanks,

Angie

[angiedu]

Here is the link I forgot to attach earlier

https://secure.sos.state.or.us/oard/viewSingleRule.action?ruleVrsnRsn=265400

[RobertG]

You are correct, the filing requirement is based on gross, rather than net income.

So you have a technical filing requirement for Oregon.  You won't owe them any tax though.

Oregon failure to file penalties are all based on the amount you owe.  No tax owed, no penalty.

See this Oregon website: Personal income tax penalties

[abhiverma812]

I have similar problem where turbo tax is not explaining if we need to enter gross rent vs net income (rent - expenses). With responses on this post I see 2 different answers. Can someone please clarify?

[ColeenD3]

It may depend on the state. Above OR was referenced and OR DOR states this:

(2) Rents. The gross income of a nonresident from rents includes all rents received from property, whether real or personal, located within this state.