I own a rental property in state with no income tax. Do I still need to declare it?

Federal Tax Return

There is no minimum income threshold for American rental properties to be reported on a Federal tax return. Therefore, please complete the Rentals sub-tab of the Passive Income tab of the Tax Questionnaire.


State Tax Return

In states with income tax:

A personal state tax return (resident or nonresident) is also required. Filing requirements depend on the particular state.

In states with no income tax:

If you own a rental home in a tax-free state outright you don't need to file a personal state tax return.

If the property is owned by single member LLC, some states (i.e. TX) require a franchise tax return.

Franchise tax returns may also be required by states that levy personal income tax (i.e. MD) in addition to a personal state tax return.

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