topic Do I include rental income from property located in California on my Hawaii State Income tax? in Investors & landlords

Do I include rental income from property located in California on my Hawaii State Income tax?

1615buddy — Sun, 14 Mar 2021 00:42:47 GMT

can rental property income be taxed in multiple states?

Re: Do I include rental income from property located in California on my Hawaii State Income tax?

ColeenD3 — Sun, 14 Mar 2021 14:56:51 GMT

Yes. All your income is taxable to your home state, unless it is specifically exempt.

As a nonresident, you pay tax on your taxable income from California sources.

Sourced income includes, but is not limited to:

Services performed in California
Rent from real property located in California
The sale or transfer of real California property
Income from a California business, trade or profession

Re: Do I include rental income from property located in California on my Hawaii State Income tax?

Carl — Sun, 14 Mar 2021 15:28:32 GMT

If HI is you resident state, then you must report all income from all sources, worldwide.

When dealing with multiple states, it is important that you do the resident return last. This is because many states have reciprocal tax agreements. The TTX program does account for this. But for things to be figured correctly, you have to do your resident state tax return last.

Because of this, you should not file any tax return, until you have completed all tax returns and are satisfied with the results. This is because in the process of completing each state return, things *will* change on the federal return.