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Should I mail past 8 years state returns to CA for rental property

I live in TX and own a rental property in CA. The property has a mortgage, hence it has been generating losses for past 8 years. I do my TX and CA taxes using TT home and business every year. And the CA tax would be all Zero's. Hence I did not mail the CA tax returns for 8 years. Today I found that, we have to mail the CA tax return even if its zero, this will help with tracking accumulated losses and depreciation, and can be applied when I sell the property in the future.

 

What is the the best way to remediate this? Should I print the past 8 years CA tax returns and mail them to FTB in CA? Is there any problem with doing this?

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1 Reply

Should I mail past 8 years state returns to CA for rental property

While you may not have any current CA tax liability from the rental property, CA has the potential for assessing a failure to file penalty, etc.

I haven't looked at this area specifically, but CA is an aggressive state.

I would recommend getting a tax professional involved, drafting a letter to see if CA would entertain waiving the penalties and you would file all unfiled tax returns.  Using a tax professional, this individual can make the request anonymously to begin the conversation. 

Some states announce a voluntary disclosure period of time, but it never hurts to ask the question even if the state hasn't made this publicly available.

*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
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