California resident with out of state rental loss

How is this reported on the California resident income tax return?

Just treat it as any other rental property? There is no refund from the other state due to the loss .

Reply to
Pico Rico
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As a CA resident, all world-wide income is taxed, and CA taxable income starts with federal AGI. There would be no state income adjustment for a resident due to an out of state rental, so the answer to your question is, there is no special reporting of this activity on your CA return.

Now, reading between the lines of your question, one might ask a follow-up -- If there had been a profit, then one would most likely be in a "other state tax credit" situation, where CA gives residents a credit for the lower of the other state tax or its own tax on the double-taxed profit. So, shouldn't the same thing apply to tax savings due to a loss? IOW, don't allow a loss to be double-counted (by two states) for state tax purposes.

In fact I did ask this question once, in this forum I think, and the answer was, there is no special handling in this situation, each state recognizes the whole loss for its own tax purposes, and does not adjust for the fact that the loss was double-counted by another state.

If there was no other income from the other state, then of course the tax benefit of the rental loss would be zero to the other state, and there wouldn't be any adjustment for CA anyway.

Reply to
Mark Bole

CA has its own Schedule E where adjustments MAY need to be made to the federal Schedule E because CA did/does not conform to federal law on depreciation.

Reply to
Alan

Thank you for that catch. With no Sec. 179 for most rental property, state depreciation adjustments wouldn't be routine but there's always federal bonus depreciation for new appliances and such to consider.

Perhaps I should have instead answered the OP's other question, "Just treat it as any other rental property [for a CA resident]?", to which the answer would be "yes". ;-)

Reply to
Mark Bole

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