do you pay income tax for income property out of state for that state?

Question

live in california but have income rental property in another state . do i have to pay income taxes were the income property resides

Answer 1

Yes, as a California resident, you are taxed on worldwide income. This means as long as you are a resident of California, you are subject to tax on all of your income, regardless of where it is earned. If you have to file and pay taxes in the state where the property is (which is typically the case), then you can claim the taxes you paid in the other state as a credit against your California income tax.

Answer 2

I'd need to know what state the property is in to verify my answer. Generally, you must pay taxes in the state the income is earned and in your state of residence. Most states that have income taxes have some form of credit for taxes paid to other states. The forms can usually be downloaded from the state's web site. If you have questions about how to complete them, it is worth the effort to consult a professional the first time. If you understand the process after the first time, you can file on your own after that.

Answer 3

You pay a tax in the state where the property is located if they have an income tax - Texas, for instance, does not. CA will allow a resident credit for tax paid to the foreign state

Answer 4

Yes you had better.that is how the make millions in 3 days guys make their millions. on the steps of many a laid back courthouse every month acres change hands because of delinquent or unpaid taxes. My neighbor lost her house that way.

Answer 5

Absolutely.