If I own rental property in another state, can I include the cost of filing a non-resident state tax return in my rental property expenses?

[ColeenD3 · Accepted solution]

Yes. For the Federal portion, you would normally be able to include the up-charge of Premier over Deluxe. However, since the only reason you are buying the extra state is for the rental, you can take the entire charge.

[TaxingRun5000]

Washington, DC requires rental property income to be reported on a D-30 Unincorporated Business Franchise Return.  The minimum tax due on this return is $250.  Can I include the $250 tax as an expense for the DC property?

[ColeenD3]

Yes. Although the text below applies to small business, it also applies to rental property.

Taxes - You can deduct various federal, state, local, and foreign taxes directly attributable to your trade or business as business expenses.

Tax deduction