What worksheet or form in TT do I use to allocate the income and expenses from a rental property in a non-resident state to such non-resident state?

[SmartishHome]

I have properly setup the non-resident state in the Personal Information and TT is allowing me to enter amounts for the non-resident state.  But how do I tell TT that the Federal Schedule E Rental Real Estate income/expenses should be allocated 100% to the non-resident state instead of being allocated to my resident state?  I cannot find the buttons to push or worksheets to enter the allocation and TT sure isn't doing it automatically.  

[DawnC0]

Enter everything on the federal return, TurboTax will transfer everything to your state returns.  Some resident state returns tax all of your income and give you a credit for tax paid in your nonresident state.  You will allocate the income and expenses if applicable depending on your resident state when you go through the state returns.  Do the nonresident return first so that any tax calculated can be applied to your resident return.  

Why would I have to file a nonresident state return?

Filing a Nonresident Return

[SmartishHome]

You say that I "will allocate the income and expenses if applicable depending on your resident state when you go through the state returns."  This allocation is the point of my question.  I am not asking about how  the states tax the income.  I am asking what buttons I push, what selections I have to make, in order to get the income and applicable expenses allocated away from my resident state and allocated to the non-resident state where the rental real estate is located and is properly subject to tax.  Can you help walk me through the process?

[DawnC0]

When you go through the state returns (all state returns are different) you will be asked about allocations.  Some states tax all of your income no matter what state the income comes from.  It depends on the laws in your resident state.   When you go thru the nonresident return, TurboTax will ask about each piece of income on your federal return.  You will allocate all of the rental income to the nonresident state.  If your resident state taxes you on the out of state rental income (some do), you can usually take a credit for the tax paid to the nonresident state.  That is why you do the nonresident return first.  

[SmartishHome]

I did the Oregon Non-resident return first.  The rental real estate is located in the non-resident state of Oregon. I did not see the allocation options you describe which is why I continue to have this question. The resident state is California. How do I properly reflect the items of income and expense from the Oregon non-resident rental real estate to the Oregon return?

[DawnC0]

You say you did the Oregon return - when you went through it, it should have asked you about the rental income on your federal return.  See the instructions at the bottom of this link - <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1901271-how-do-i-file-a-nonresident-state-return">https://ttlc.int...> - If you still have issues, you can contact support - <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1899263-what-is-the-turbotax-phone-number?jump_to=answer_3300041">...> - They can do a screen share with you.

[Judy-A]

I had this same question (in 2021), and also did not see any opportunity to allocate rental income & expenses to the nonresident state.  I re-did the non-resident state section in TT carefully, but still never saw a chance to enter this.  

Found the solution on the TurboTax screen for "[nonresident state] Source Income and Adjustments," where instructions say to "report the part of the following income that came from [nonresident state] sources."  There are line items for Wages, Taxable Interest, Capital Gain or Loss, etc etc., showing the amount of each from the Federal form and asking user to enter how much of that came from sources in the nonresident state.  Net income from the nonresident state's rental property goes in the line item for "Rents, Royalties, Partnerships" (TT doesn't ask for expenses & income details from the nonresident state's rental property, it just wants the net figure.) 

If you don't have any rental property in other states, the Federal and nonresident state figures here would be the same.  (TT may have auto-generated a number for the nonresident state here, but it's not clear what it's based on if it doesn't know the state allocation.)

If you need to see a breakdown of your rental property income & expenses from the Federal form, you can have TT print out an interim copy of your Federal Schedule E.