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NLC
Level 2

Rental property in California (CA resident) and in Oregon. CA return lists both properties, but Oregon none??

I have a rental property in California (CA resident) and one in Oregon. CA property has a profit, OR has a loss.  This is the first time filing in Oregon. Prior two years erroneously included both rental properties profit/loss in CA return. FYI, I opted for second state in TurboTax after I had already finished CA return in TurboTax.  CA return lists both properties and it doesn't appear OR lists the OR rental. This doesn't make sense to me, is it correct? If not, how do I remove the OR property from the CA return and reflect it in the OR return?

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1 Reply
TomD8
Level 15

Rental property in California (CA resident) and in Oregon. CA return lists both properties, but Oregon none??

Be sure you indicated in the Personal Info section of TT that you had Other State Income and that the other state was OR.

Since you are a CA resident, your rental income from both states is taxable by CA.  Your resident state can tax all your income, regardless of its source.

Your rental income from OR is also taxable by OR.

CA and OR are reverse-credit states.  This means that your non-resident state of OR will give you a credit on its return for the tax you pay to CA on the OR property.

To make this work in TurboTax, when you get to your state returns, be sure to complete the home state CA return before you do the non-resident OR return.  This will allow the credit to flow properly.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
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