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Level 1
June 1, 2019
Solved

I am a California Resident, I also have rental income for property in Washington State. Can/Do I exclude Washington income from California return? If so how is this accomplished?

  • June 1, 2019
  • 1 reply
  • 23 views
For Same situation, if WA income is to be reported in CA reture, is there any specific steps needed in order to take advantage of depreciation and WA business costs as applied to CA state return?
Best answer by CalCountry
As another SuperUser "SweetieJean" reminded me before I had my morning coffee, Washington has no state income tax.  So, as a California resident your Washington-sourced rental income will be fully taxed by California.  Remember that depreciation is one among the many "expenses" associated with a rental, and it is the net rental income (after expenses) that is taxed.  Your federal Schedule E for your rental is used by both federal and California tax returns to determine your taxable net rental income.

(Sorry SJ -- I accidently trashed your comment)

1 reply

CalCountry
Level 6
June 1, 2019
As another SuperUser "SweetieJean" reminded me before I had my morning coffee, Washington has no state income tax.  So, as a California resident your Washington-sourced rental income will be fully taxed by California.  Remember that depreciation is one among the many "expenses" associated with a rental, and it is the net rental income (after expenses) that is taxed.  Your federal Schedule E for your rental is used by both federal and California tax returns to determine your taxable net rental income.

(Sorry SJ -- I accidently trashed your comment)