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

At-Risk Limits And Reported Income

What are at-risk limits, and how can they help you reduce your reported income? Learn more about at-risk rules and get tax answers at H&R Block.

I need to know how much can a child earn before paying taxes. How much interest income can my dependent child earn befor

How much investment income can children earn before paying taxes? Learn more from the tax experts at H&R Block.

Stock Options

Learn more about employee stock options and get tax answers at H&R Block.

Employee Stock Purchase Plan Taxes

Learn more on how taxes impact your employee stock purchase plan from the tax experts at H&R Block.