Rental in another state-Ca

[wclyon]

We live in Idaho.  We bought a rental house in CA in 2022.  We have no other tax-related dealing with CA.  In 2022 the CA rental had a net loss of $18k.  Do we need to file a CA tax return?  TIA.

[JohnB5677 · Accepted solution]

Yes, you will file a California Schedule E.

"Nonresidents are taxed only on rental income from property located in California.

If you're a nonresident, include your net income or loss on California Adjustments — Nonresidents or Part-Year Residents (Schedule CA 540NR).

Visit Instructions for Schedule CA (540NR) for more information."

CA Rental - Personal income types

You will also want to do it to get credit for depreciation and passive losses that will be carried to future years.

If this does not completely answer your question, please contact us again and provide some additional details.

[wclyon]

Thanks John, good point- to begin tracking depreciation and passive losses.

 Follow-on question: Does TT automatically save and carry over passive rental losses or do I need to track passive losses and enter them each year?  I fear I have not done that for many years on previous properties.  

[AnnetteB6 · Accepted solution]

Yes, passive losses are reported and tracked on Form 8582 which is included as part of your tax return.  

If you do not use TurboTax in a future year, that form will show the passive losses that may have accumulated.  If you do use TurboTax for future returns, the amounts should automatically be brought forward to the next year's return.  If they are not, use Form 8582 to get the amounts from the previous year.

@wclyon 

[wclyon]

Thank you Annette, good to know.  I’ve been using TT for years…will check out my forms 8582.  Cheers!