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Level 1
June 3, 2019
Solved

I relocated from AZ to CA for job on June, 2016. I have a rental property in AZ. How do I file rental income for AZ and CA tax? Do I get double taxed by the two states?

  • June 3, 2019
  • 1 reply
  • 16 views

I need to know if CA considers the rental income from AZ taxable?

Best answer by DavidD66

If you became a resident of California, you will have to claim the income on your California tax return, and yes, they will consider it taxable.  You will only have to include the income from the rental for the time you lived in California.   You will also include it on your Arizona tax return.  You will not be double taxed, as California will give you a credit for the tax paid to Arizona for the period you were a California resident.

1 reply

DavidD66Answer
Level 15
June 3, 2019

If you became a resident of California, you will have to claim the income on your California tax return, and yes, they will consider it taxable.  You will only have to include the income from the rental for the time you lived in California.   You will also include it on your Arizona tax return.  You will not be double taxed, as California will give you a credit for the tax paid to Arizona for the period you were a California resident.

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Level 8
June 3, 2019
Actually, between AZ & CA, it's the nonresident return that takes that credit so it should be calculated by the part-year AZ return since it's the nonresident portion of the AZ return that is double taxing the income.