When reporting rental income to a non-resident state do I enter the gross amount of income or the Federal adjusted amount?

[jdslbourque]

I earned approximately 17K in rent on a property in South Carolina. I reside in Michigan. On my Federal return given expenses, my income is about 1K.  Which number do I report on my SC state return?

[TomD8]

You enter your net income (or loss).  Since TurboTax draws its state tax return information from your federal return, the program itself should generate the correct info.

[Carl]

The program "should" fill those details in for you. But basically, you report the total gross rental income, and the taxability of that will be offset by the rental expenses and depreciation taken.

[chrgrl]

I would love to know if you ever figured this out because I'm in the same situation.

My husband and I had rental income of about 40K, but our net income is zero after all the expenses associated with our rental property (I guess we make too much from our "regular jobs" to take an actual loss).

I'm stuck on the income section of the South Carolina tax return.  The federal info is printed there, but the boxes for SC have to be filled in manually, and it asks for rentals/royalties earned in SC and certainly does not differentiate between gross or net.

If it is gross, I do not see anywhere later in the SC return to enter expenses unless I'm missing something.

[Carl]

My husband and I had rental income of about 40K, but our net income is zero after all the expenses associated with our rental property (I guess we make too much from our "regular jobs" to take an actual loss).

Nothing abnormal there. In fact, it is not common for long term residential rental real estate to actually show a profit or gain on line 26 of the SCH E. Especially if there's a mortgage on the property. If you add up the deductible rental expenses of property taxes, insurance, mortgage interest and add that to the depreciation you're required to take, that will commonly exceed your total rental income for the year. Add to that other allowed rental expenses such as maintenance and repair expenses, and you're practically guarantted to show a loss.

Up to a maximum of $25K of excess loss can be claimed against other ordinary income, unless your AGI exceeds something like $160K for the year I think. But unallowed losses are just carried forward to the next year.

It's also not uncommon for the carry over losses to build up and increase with each passing year. But no matter what, those losses can be realized in the tax year you sell the property.

I'm stuck on the income section of the South Carolina tax return. The federal info is printed there, but the boxes for SC have to be filled in manually, and it asks for rentals/royalties earned in SC and certainly does not differentiate between gross or net.

It's gross rental income.

If it is gross, I do not see anywhere later in the SC return to enter expenses unless I'm missing something.

I'm not familiar enough with state taxes other than to tell you, but I know for a fact you enter the gross rental income.I would fully expect expenses to be dealt with on a later screen unless the program already imported them from the federal side. If it did import them, I'd expect you to be able to see that on a later screen such as a summary screen once you complete the rental section of the state return.

[isaiah419n10]

Seriously! You described it 1000% accurate. It does not distinguish between gross or net...grr. I have the same prob for 2023 for Idaho rental.  UGH.  What did you figure out?  I'm going to guess it is supposed to be gross and then the fed deductions would be applied.

[DawnC]

Enter all of your rental income and expenses on the federal portion, and TurboTax will transfer all of it to your state return.   When you go through the ID return, you will tell TurboTax that the rental income/expenses transferred for that property belong to the ID return.   @isaiah419n10 

[isaiah419n10]

I'm confused by what you are saying.  There was no place for me to tell it that.  Turns out I clicked through and even though we made only 22k and had deds of $20k it says we owe $1000.  Which I do not understand. :(  I hate that you cannot see the forms you have populated.

[DawnC]

You can preview your form from the Print Center.   If Idaho is your resident state, you don't have to do anything, since TurboTax automatically transfers all income to your resident state return.   If Idaho is your nonresident state, you will be able to allocate the rental income and expenses from your federal return when you prepare the nonresident return.   If you are an ID nonresident, use the instructions in the link to set up the nonresident return.   @isaiah419n10 

You will come to a screen like the one below - enter the full amount of the federal column in the Idaho column for the Idaho property.    

[isaiah419n10]

I already set it up as a nonresident. And it shows like your pic a ## for Fed with blanks for ID.  I do not understand this. 

I also had a QBI (loss) that I took on FED- this populated. BUT it wants a # for QBI for ID.  Highly confusing.  I put zero because I claimed this already and it was for the ID property.  But then I got an error and it wanted something entered again.  It said something like you can't have this number here and not somewhere else??  I don't get it because on the first screen under help it said NOT To enter anything unless the QBI was outside of the state... even though it was in the state column.  So I entered 0.

TT really needs to work on having much clearer explanations and headings here.  I may end up having to submit with a different company due to this issue.  

@DawnC 

[DawnC]

If the QBI was for the ID property, then enter the same number from the federal return on the Idaho return.    You are allocating the numbers from the federal return to the ID nonresident return.   Any income OR loss that belongs to ID should be allocated to ID when you go through the ID state return.  

[isaiah419n10]

Turns out I spoke wrong. It was Business Income (Loss) which was NOT earned in ID but it is on the same page as the rents/royalties.  So I enter 0 because it wasn't earned in CA???

[DianeW777]

Yes, that is correct if you are a California (CA) resident and only had rent or royalty income in Idaho (ID).  You would not include any business income on the ID nonresident return only your resident return.

@isaiah419n10 

[isaiah419n10]

Just confirming that... my business inc (actually loss) was from CA.  I don't have to report my earnings (LOSS) under Idaho as I did not live there?  

Is there a way to see the forms before I submit?  I tried to print and it keeps wanting to walk me through everything but wont' let me see the forms. @DianeW777 

[DawnC]

Correct.   You don't have to report your CA loss on an Idaho nonresident tax return.  You can print or preview your forms before filing, but if you haven't already paid your TurboTax fees (if any), you'll be asked to pay before you can print your return.

1. Sign in to your TurboTax account and open your return by selecting Continue or Pick up where you left off.
2. Select Tax Tools from the left menu, then Print Center (on mobile devices, tap in the upper left corner to expand the menu).
3. Select Print, save, or preview this year's return, and follow any additional instructions.
4. Once your PDF opens in Adobe Acrobat Reader, select the printer icon near the top.
5. Make any adjustments in the Print window and then select Print at the bottom.    @isaiah419n10