CA 3801: do I need to use for out of state rental

[SoCal_Blade]

I noticed TT began filling out CA form 3801 with rental income/loss (passive activity) for a property I own and rent out in VA. Is this correct? I thought I would have to file VA state taxes for that. I have a net loss showing up, but again was not sure if this correct. Do non-CA rental properties need to be accounted for on CA tax return? I am permanent resident of CA (all year) and me and my wife own the property, there is no LLC or S Corp, etc.

[RobertB4444]

@SoCal_Blade  You live in California so you should know - California taxes everything.

That works out for you in a year where you have a loss on the property.  Enjoy it while it lasts.  If you have a gain you may owe taxes to Virginia AND you may owe taxes to California.  On the upside, California will give you a credit for any taxes paid to Virginia.

In the future make sure to do your Virginia non-resident return FIRST and then your California resident return in order to make sure that California gives you credit for those Virginia taxes.

[SoCal_Blade]

Thanks @RobertB4444, don't I know it, LOL! CA is brutal with taxes.

I have also learned that it doesn't appear I'll need to even file in VA this year since there was a net loss and I am a non-resident of VA.