Rental property tax in multiple states

[Jianzhoulin]

I have a rental property in North Carolina and have a net income. Also a property in Washington but has a net loss. And the total overall rental income is a net loss. Do I need to pay property tax in North Carolina?

[tagteam]

The filing requirements for NC are at the link below if you're a resident.

https://www.ncdor.gov/taxes-forms/individual-income-tax/individual-income-filing-requirements

See the information at the link below if you're a nonresident or part-year resident.

https://www.ncdor.gov/taxes-forms/individual-income-tax/nonresidents-and-part-year-residents

If you are a nonresident of NC, you likely still need to file an NC return since you have NC source income from the NC rental property.

[Jianzhoulin]

So even though my total rental income is a loss, but the North Carolina rental is a net gain.  Do I still need to pay North Carolina property tax? I use Turbotax but it seems that my North Carolina property tax is still 0 though. 

[tagteam]

Per the information at the link I posted:

If you were not a resident of North Carolina at any time during the tax year 2022 but you received income in 2022 from North Carolina sources that was (1) attributable to the ownership of any interest in real or tangible personal property in North Carolina.........you must file a 2022 North Carolina individual income tax return, Form D-400.

[Jianzhoulin]

I understand I need to file a North Carolina income tax return.  The real issue is what is the tax I need to pay. I used Turboxtax, and it seems that as long as my total net rental income from all my properties in the US is a loss, I don't need to pay the North Carolina income tax even though I have net income from my rental property in NC. 

[tagteam · Accepted solution]

See open (ncdor.gov)

You need to allocate your NC rental income and expenses on the NC return.