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Level 2
March 13, 2021
Solved

If I own rental property in another state, can I include the cost of filing a non-resident state tax return in my rental property expenses?

  • March 13, 2021
  • 3 replies
  • 21 views
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Best answer by ColeenD3

Yes. For the Federal portion, you would normally be able to include the up-charge of Premier over Deluxe. However, since the only reason you are buying the extra state is for the rental, you can take the entire charge.

3 replies

ColeenD3
ColeenD3Answer
Level 15
March 13, 2021

Yes. For the Federal portion, you would normally be able to include the up-charge of Premier over Deluxe. However, since the only reason you are buying the extra state is for the rental, you can take the entire charge.

Level 2
March 14, 2021

Washington, DC requires rental property income to be reported on a D-30 Unincorporated Business Franchise Return.  The minimum tax due on this return is $250.  Can I include the $250 tax as an expense for the DC property?

ColeenD3
Level 15
March 14, 2021

Yes. Although the text below applies to small business, it also applies to rental property.

 

Taxes - You can deduct various federal, state, local, and foreign taxes directly attributable to your trade or business as business expenses.

 

Tax deduction