State tax (spouse is full time non-resident and I am part-time resident) how to file w/rental property

[sunderd]

Situation:

We are filing a MFJ fed return.  We have a Rental Property (50%/50% ownership) in VA.  Spouse is in Florida all-year; non-resident of VA.  I was in Florida and then moved to VA in Jul.  As I was going through my mock MFS fed return to complete my VA State Return I was confused on the Rental property portion.  If I only claim 50% then I will have to complete a non-resident State return for my wife's portion, correct? Can I just claim 100% or would this be wrong?

BTW

- Our 2019 and 2020 Fed return show both of us as owners of the property

- Rental property income was zero after expenses, taxes, mortgage interest, and depreciation.

Thank you.

D

[JotikaT2 · Accepted solution]

It depends.

Typically, you would need to file a nonresident VA return for your wife as she never lived there and resided in FL all year.  

However, since you indicate the only reason for filing in VA was for the rental property located within the state and the rental property has no income for the year, she does not have a filing requirement (assuming it is only the rental property that needs to be reported for her in VA) as she is below the filing threshold.  

Please see the following link for additional information on the filing threshold as well as the criteria for filing separately within Virginia.

Virginia Filing threshold