House vs. Property Taxes In Multiple US States?

Discussion in 'Taxes and Accounting' started by Gooby, May 16, 2016.

  1. Gooby

    Gooby

    I'm sure this is more a question regarding income taxes, but if an investor has houses and land in multiple US states, does he have to pay income tax in every state which has an income tax or not?

    Thank you.
     
  2. lindq

    lindq

    Income taxes in the state in which you officially reside. Property taxes in each state where you have property. Estate taxes upon your death. There is no escape.
     
  3. qxr1011

    qxr1011

  4. If you "earn" in some states besides your state of residence, sometimes you have to pay state income tax in those other states too. You may have to keep track of how much money you earn in each state and file a state income tax return in each. Don't know which states require this separate accounting or whether rental income qualifies. Best check with an accountant.
     
  5. Sig

    Sig

    That's not exactly right. You may have to pay income tax if you were employed in another state, but not if you earned passive income from a rental property in another state. I could be missing some obscure rule, but I'm fairly certain you wouldn't ever have to pay income tax to a state where you are not resident if you're just renting a house there, as long as renting houses isn't your business.
     
  6. qxr1011

    qxr1011

    it probably depend on the state (s), what is white in Alaska may look black in New York :)

    in New York they tax anything that's moves

    if you residie in new york and own a house in florida, which you renting, you may have to pay taxes in florida on that rental income and may (or may not, i believe depending on income) to get partial credit from that taxes, paid to florida, in NY

    If the property is in a state without an income tax, you still have to pay NY income tax, on the income, because the income was received while you were a NY resident
     
  7. Sig

    Sig

    Since FL has no income tax, you wouldn't pay income tax in FL regardless. However even if FL did have income tax you'd still pay your tax on the rental income in NY unless renting houses was a business for you.