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?
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.
Learn more about IRA withdraw penalties with advice from the tax experts at H&R Block.
Learn more about reporting a short sale on your taxes with advice from the tax experts at H&R Block.
Learn more about taxes on selling a home and exclusion rules with the tax experts at H&R Block.
What is a capital gain or loss, and how do they affect your taxes? Learn more from the tax experts at H&R Block.