Hello,
As the subject indicates, I live in MN and have invested in rental properties in two different states. The first one is in Texas (purchased in 2020) whereas the second investment is in Arizona (purchased in Dec 2021 and Jan 2022).
I used Turbotax Premier when filing my taxes last year to enter the Schedule K-1 information for the property in Texas.
Unfortunately, the person preparing the Schedule K-1 for both the investment properties passed away in a crash and their firm has not yet caught up on the backlog. So we have not received the Schedule K-1s yet.
Upon consultation with a CPA (via one of the principal investors), we were told since there was no cash distribution for the Arizona properties, we would not need to file an AZ State tax return this year. Similarly, since Texas does not have state income tax, we would not need to file a TX state return either (like with last year's return).
In short the Schedule K-1s would only impact filing the Federal tax return - is that correct?
If I understand correctly, we can file for a federal tax extension.
So my question is as follows:
If our MN State tax is not impacted by the delay in Schedule K-1, can I still file the MN State tax return by April 18 and just file an extension for the Federal Tax return?
Will TurboTax Premier (CD) allow me to file the MN State Tax return with the State of MN while filing for an extension for the Federal Tax Return?
Thank you for any input!
Yes, your statements are correct. You should enter all the information you have that applies to Federal and MN and proceed to file your MN return. Then file an extension for your Federal return. When you receive your K-1, you can log back in and enter it to complete and file your Federal return.