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I file Hawaii resident and California non-resident. I have one rental in CA and one in HI. The Fed return combines the two but the two state returns don't divide them. They use the Fed combine. How can I divide them.


    Bruce, thanks for providing some detail on Mar 6. Yes, both rentals need to be on their own federal Schedule E Worksheets and TT/HI & TT/CA will use them from there. No entries are generally necessary at the TT/State level for those except for different depreciation rules or whatever.

    Calif Schedule CA(540NR) line 17 columns A & D should both be $7,900. That's both rentals combined. Column D should be combined because that is "... as if you were a CA resident". If you were a CA resident then CA gets to tax that HI rental (and vice versa in reality: HI gets to tax the CA rental because you are a HI resident). However, you have to enter the CA rental $8,118 income in column E. TT/Calif can't do that for you because it doesn't know where the rentals are. It doesn't use the location address on the Calif Schedule E Wks (although you'd think it would <but there are reasons it doesn't>).

    Once you enter $8,118 in Sch CA(NR) line 17 column E, and 0 for all other federal income items, your Calif return is correct.


      Hi Bruce96815

      Did you enter all of the income and expenses under one property? You should enter two properties and the income and expenses separately. 

      Then you should update your non-resident CA return (before your resident HI return). The software will ask what income is sourced to CA and it sounds like the rental property is your only CA income, so you should enter that amount out of whatever total the question is asking.

      Let me know if you have questions.


      • This did not help.  I separated rentals on original fed return.  I was able to change Hi return to show only HI rental but did not adjust my HI return tax due.  My tax should go down reducing $28800 but it did not.  I was unable to change the CA return. I need to correct both and readjust the refund (CA) and payment (HI).
      • I see you do not think this is helpful, but that is why I asked you a question - so that I can understand your situation and assist you.
        If you would like me to provide additional assistance, I will need to ask you more questions. Did you update your CA return, before updating your HI return?

        You will not be reducing your HI income, as the state does not allow for a deduction for out of state income. Alternatively, they allow for a tax credit for the taxes you pay to the state of CA.
      • My Fed return is OK.  I was able to change the HI return to only show the HI rental which reduced the total income by 28K but my tax bill did not change.  It should have.  I was unable to make any changes in the CA return.  It still shows the combine two rentals.

      First, your resident state, HI, gets to tax all of your income regardless of where it's from so you can't remove the CA rental from there.

      The Calif nonresident/part-year return, Form 540NR, computes your income and tax as if you were a resident the entire year, then computes a net tax rate by dividing the total tax by total taxable income. Your California-source taxable income is then multiplied by that net tax rate to determine your California tax. You can see this on Form 540NR lines 31-37.

      So you do report everything but towards the end of the interview (Adjustments to Income / Income and Expense Adjustments / Nonresident Adjustments) is where you allocate the California-source income which is multiplied by the net tax rate. See Form 540NR, lines 31 - 42 and Schedule CA(540NR).

      So when the TT/Calif interview shows you the combined rental income(loss) for you to allocate, you need to enter the CA rental income(loss). All other income items on your federal return are non-Calif-source so you would enter 0 for those.

      As TT/Amanda says, prepare the TT/Calif return first, then TT/HI so it can reach into the Calif return to grab the information it needs to prepare the Other State Tax Credit for some or all of the Calif tax due on that rental income that HI is also taxing.

      • Sorry, but I still have a problem.  I did get some more specific information that I will provide. Original problem:  Fed return OK.  I file both Hawaii resident and CA non resident.  I have rental income in Hawaii of 21,600 but after all deductions I have a negative 218.  CA rental income is 28,800 and after deductions a positive 8118.
        CA 540NR NONRESIDENT FORM line 17 column A shows correct 7900. Column D shows 7900 and I think it should be 8118. Column E shows 0 and I think it should be 8118. It does not appear that I am being taxed for the 8118. CA withheld 967 and TT is refunding all of the 967. I have more numbers related to this on form 3801.
        Hawaii form N-11: It appears they combined the 8118 and neg. 218 for 7900 which I believe is correct, but line 35 shows 0 which is where I believe the CA credit for the tax payment on 8118.  But CA I did not pay tax on the 8118 as I think I should have.
        Line 53 shows the total rent of (21600 + 28800) 50400. HI has one more form with no number but says "Additional information ...." shows "Hawaii Gross rents, 21600 + 28800 = 50400.
        Can you me fix it.
        Answer your question, I did list two separate properties.
        If I get back into my State returns, CA first, where do I make the correction to separate the two properties to two different States.
      • Please don't let me hanging.  I have been over the Fed, HI State, CA State many times following your instructions. My 2010 return had the same problem and a Turbo lady walk me through a fix by overriding the  software because it was in error.  I don't know if that is the issue or more likely, something I did wrong.  My 2011-12 returns worked fine.  Can you tell where I have to go to fix the issue.  Fed/ HI/ CA?  Maybe if I had a clean program to start all over, especially if I did something wrong. Or can you tell me where I made the error and how to fix it.

      Hi Bruce96815

      In general, the software can handle your situation. Personally, I would clear out your states and re-answer the questions, updating CA first and then HI. Recall, that you should not reduce your HI income by amounts related to CA (see Terry's instructions below).

      Due to the trouble shooting nature of your questions, however, you may be better served by a live tech or tax agent. To initiate a live contact, please begin at the following link: https://support.turbotax.intuit.com/contact/#/search/

      Let me know if you have questions. 

      • Amanda, I may have found the problem but don't know how to fix it.  CA return, "All other income", "Rental Royalty Summary."  I listed both the HI property and CA property here.  I cannot delete the HI property.  It won't let me.  Was I in error by listing both properties here? If so, how can I delete it?
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