Question

I have a question related to investment property tax deductions and filing taxes. I have a rental property in Colorado that provides income. However, I live in another state. Do I need to file a Colorado return to address investment property tax issues?

Answer

Your investment property income and deductions would be Colorado source income and deductions. You must file a nonresident Colorado return if both of these apply:

  • You’re required to file a federal return.
  • You have both of these even though you’re not a Colorado resident:
    • Income from a Colorado source
    • A current-year Colorado income tax liability

Each state has its own filing requirements for nonresidents. Check the specific rules of the state in your situation.

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