Out of State Income Tax Question - Texas Investor considering Ohio
Hey y'all, I am considering buying out of state in a market that has state income taxes. I live in Texas where we do not have state income taxes. In this case, how does that work? It is my understanding that profit made from an investment out of state will be subject to state income taxes. Just for the sake of numbers lets say I make $100k/year here in Houston. If I buy a property in Ohio and profit $3k on it, am I only taxed on the $1500 (factoring in $1500 depreciation: 3k-1500)? Do they use my total income earned from out of state and in Ohio to determine the basis for my tax (could be a difference of .5% and 5%)? I just need to better understand the tax impacts you guys are having for investing out of state. If anybody invests in Ohio, I would love to hear from you with regards to the state income taxes you pay. Sorry if this email is confusing, I have a bunch of thoughts in my mind...