Can I tax deduction on CA state tax for a property tax and mortgage interest paid for property out of state?

Answer 1

You've given enough info to answer the question given that you are a CA resident.

If the property is a rental or investment property, you may have to file both a CA return and one for the other state (as a non-resident).

As a rental you would show the mentioned expenses on Sch E.

If it is bare land, (investment property) you deduct the interest on Sch A(1040), line 13 as investment interest, but only to the extent that you have investment income. Use form 4952 to figure the allowable deduction. Add the property tax to the basis of the property.

If it is a 2nd home, you deduct them on the same lines as you use for the prop. tax and Mortgage Interest on your main home, Sch A(1040), lines 6 & 10 respectively. No adjustment is needed on Sch CA(540).

Only interst and tax on 2 homes may be deducted by Fed law, to which CA conforms,

Answer 2

insufficient information

if it is an investment or rental property and you are reporting on Federal Schedule E or C to form 1040, likely yes -- CA would want to tax your income from everywhere but only be entitled to tax the net income after all ordinary and necessary business expenses.

If it is your personal or second residence ... pls consult CA instructions for Form 540NR .. and I'll bet the answer is NO. CA is fairly well known for trying to squeeze every last possible penny out of everyone who falls into their tax clutches and lives elsewhere ... after all, they can't vote in CA so the backlash against CA politicians for taxing non-residents is zero.

And no, the Congress of the United States hasn't made law on this subject and isn't likely to -- CA is too big and Speaker Pelosi certainly isn't going to endanger her being re-elected in CA.

:/