Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 07-24-2017, 05:00 PM
Junior Member
 
Join Date: Jul 2017
Posts: 1
Question Moving to New State (kind of) - where to file?

My husband and I live in CA but we're looking to buy a house in TN. He's a 1099 employee for a CA company and will be working and living out of this house a large portion of the year while I remain in CA. (We currently rent an apartment in CA we do not own any property there).
We also want to rent out 2 of the rooms in the TN property as well. What does all of this mean for our taxes? Will he be able to establish his business out of TN? Do we file married filing separately and file out of 2 separate states for our income taxes? Will the rental income be under TN or CA?
Thanks for any guidance!



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 07-25-2017, 07:32 AM
Moderator
 
Join Date: Oct 2010
Posts: 4,836
My husband and I live in CA but we're looking to buy a house in TN. He's a 1099 employee for a CA company and will be working and living out of this house a large portion of the year while I remain in CA. (We currently rent an apartment in CA we do not own any property there).
We also want to rent out 2 of the rooms in the TN property as well. What does all of this mean for our taxes? =======>>UNLESS your husband is a full year resident of TN, both of you, as full year residents of CA, need to fiel return and report even rental income in TN and income earned while working in the house of TN to CA BOE and any tax paid to TN can be claim as tax credit on your CA return.

Will he be able to establish his business out of TN?=======>>Of course he can establish any biz in any part of the US in any state even outta TN as a foreign business.it is called foreign corp, a term used in the US for an existing corp registered to do business in a state or jurisdiction other than where it was originally incorporated. A foreign corp is one incorporated as a domestic corporation in one state of the US, authorized to do business in additional state(s).

Do we file married filing separately and file out of 2 separate states for our income taxes? =====>>it is up to you; you may jointly or separately file CA tax with CA BOE; however, unless your spouse is a part year or full year resident of TN, he must report all source of income to CA and can claim any tax paid to TN on his CA return.

Will the rental income be under TN or CA?====>>any rental income from the home in CA and homes in TN need to be reported to CA when you file CA return however, as said any tax paid on rental income in TN can be claimed as credit on your CA return to avoid double taxation in TN and CA.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Like Kind Transactions: Boot Received david33x Miscellaneous 1 04-23-2016 01:14 PM
Can a taxpayer and his or her same-sex spouse file a joint return if they were married in a state that recognizes same-sex marriages but they live in a state that does not recognize their marriage? TaxGuru For 2013 0 02-10-2014 06:09 PM
Gift in Kind Donations kamiemac Non-Profit Organisation 0 02-14-2012 11:14 PM
Do I have to file state taxes for california when I didn't live in state? egmacrae Income 1 02-06-2009 01:09 PM
What is a like-kind exchange and how does it benefit the taxpayer? adony Rental Real-Estate 0 06-09-2008 05:16 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning