Posted by Dave on August 06, 2011 at 17:21:19:
If I live in CA and lend money to rehabers in AZ, are the interest, points and fees that I received taxed in CA or AZ?
Similarly, if I live in CA and buy/rehab/sell a property in AZ, is my profit taxed in CA or AZ?
Is anything different if I live in AZ and invest in CA?
Thanks,
Dave
Re: Out of State Taxation - Posted by John K Haslach, CPA
Posted by John K Haslach, CPA on September 22, 2011 at 14:28:17:
You are taxed on all your income in the state in which
you are a resident. The issue is whether you are
subject to tax in the nonresident state. If you are
subject to tax in the nonresident state, you will get
credit for the tax paid to the nonresident state on
your resident return.
Re: Out of State Taxation - Posted by John K Haslach, CPA
Posted by John K Haslach, CPA on September 22, 2011 at 13:14:44:
If you are a resident of California, all of your income
is taxable in CA. The issue is whether the income is
taxable in AZ.
Re: Out of State Taxation - Posted by William Bronchick
Posted by William Bronchick on August 06, 2011 at 18:13:33:
Generally it comes down to where the
money was earned but ca being high
tax state will try to get their hands
on anything they can. If you want to
keep the money in AZ then form an AZ
corporation.
Re: Out of State Taxation - Posted by Dave
Posted by Dave on August 07, 2011 at 09:44:17:
Corporation or not, the net profits are eventually going to come to me personally then taxed in CA … or do I get taxed in both states?
Re: Out of State Taxation - Posted by William Bronchick
Posted by William Bronchick on August 07, 2011 at 12:33:48:
Well, this will depends on whether you are an S corp, C corp or LLC.
Re: Out of State Taxation - Posted by Dave
Posted by Dave on August 07, 2011 at 14:01:27:
Let’s say s corp since that’s what I’m doing now in CA.
Re: Out of State Taxation - Posted by William Bronchick
Posted by William Bronchick on August 07, 2011 at 16:21:14:
More than likely the K-1 will result in CA tax on your personal net income. AZ may place a corp tax on the earning of the company, you’ll have to check with the state dept of revenue.
Re: Out of State Taxation - Posted by Dave
Posted by Dave on August 09, 2011 at 18:59:38:
Is there any way I could be taxed in both states on the same dollar?
Thanks for your answers.
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I had no idea how to approach this before-now I’m lokecd and loaded.
good advice guys thanks
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