Do I need to file individual state tax If I have a rental property in another state under a LLC?

[TaxPay3r]

Hello,

We've two different rental properties in two states (TX and NC). Both properties are registered under different LLCs and we've already e-filed the income for both the taxes online and acquired the schedule-K for our partners. I reside in another state which doesn't have any state tax filing.

So, question is :

1. Do I need to file individual state tax for both TX and NC?

[ThomasM125]

I believe you are asking if you need to file an individual income tax return for North Carolina and Texas. You do in North Carolina since  they require you to if you have rent receipts from property located in that state. You don't for Texas since they don't have an individual income tax filing requirement.

[TaxPay3r]

Yes. I was looking if I need to file individual taxes in both the states. Thanks for your reply. I do have a 1099 which was received from the NC property management. Again, this property is on LLC having more than 2 partners on file. Given this all comes in Schedule-K of my individual tax return in my own state,  Do I still need to submit individual taxes in NC? This is my first-time with this situation, hence these questions 🙂 

[MarilynG1]

Yes, if you reported a K-1 with Rental Income that was generated from property in North Carolina, you would file a Non-Resident State Return there.

Your K-1 should break down what portion of the Rental Income is from North Carolina.

Here's more info on How to File a Non-Resident State Return and Why Would I File a Non-Resident Return. 

@TaxPay3r 

[TaxPay3r]

Thank you very much for your response. Even if the K-1 has a loss, I assume the return must be filed for NC. Right?

[MaryK4]

Yes, North Carolina looks for GROSS income, not net (so it essentially wants to see the losses reported).  @TaxPay3r