Non resident state filing in Arizona with rental property

[jorie_g]

I am filing a non-resident state form for Arizona.  We own rental property in AZ, and the Schedule E I filled out for my federal form shows a loss for the rental property.  What is the proper way to enter the income and the loss on the Arizona filing?

[MonikaK1]

When you enter the rental income and expense information in the Federal section, TurboTax will transfer the information to the State return. Complete the Arizona state interview and answer all of the questions so that TurboTax can determine whether there are any changes needed for Arizona state taxes.

Be sure to prepare the Arizona nonresident return before your resident return, if your resident state also has state income taxes. Your resident state will normally allow a credit if any of your income was also taxed in another state.

See also this TurboTax article and this one on multiple-state situations.

[jorie_g]

thank you, I did follow these steps, but Turbo Tax did not transfer the information to the State return.  I was careful to work on the AZ return first before my home state, but the AZ return did not pre-populate with the income from the rental property and so I added that in manually under "rents" -- but it was also not obvious where to enter my losses for the property.  I manually added that as well, but I'm not confident either are entered in the correct way or spots on the form.  Can you tell me what lines they should be on in I look at the actual form (not the Turbo Tax interview)?

[MayaD]

You should report the rental income and expenses on your federal return. 

On the non-resident AZ return:

1. Open your return and click Edit next to AZ return.
2. Continue until you get to the screen Arizona Income
3. On the line Rents, Royalties, and All K-1s you will see the federal amount of net rental income, enter the same amount for Arizona.