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.

Related Topics

Related Resources

Picking Up Seasonal Work: A Teen’s Guide to the Tax Implications

For teenagers filing taxes due to picking up part-time seasonal work, learn the the top things you need to know at H&R Block.

What are the consequences if I withdraw money from my 401(k) or IRA?

Considering a withdrawal from your 401(k) or IRA due to the impacts from the coronavirus? Learn from tax experts at H&R Block’s what you should consider.

Is A 401K The Same As A Traditional IRA?

Learn more about the similarities and differences between a 401K and a traditional IRA with help from the tax experts at H&R Block.

Should You Pay Kiddie Tax on Unearned Income?

Learn more about using form 8615 and 8814 to file child’s unearned income with help from H&R Block.