Out of State Income Tax

[Carlos Rovira]

Quick question for a savvy CPA: If I own property in a state like Indiana or Tennessee with an LLC formed in FL, am I liable for state income tax in Indiana or Tennessee for the income generated through renting the property? Should I file a state income tax return in those states?

[Brandon Hall]

@Carlos Rovira the general rule is that income is taxable in the state in which it is earned. Rentals generally fly under the radar because their generated taxable income is so small that it does not incur a tax liability in the particular state. 

What you are looking for is a real estate savvy CPA who can also talk about nexus rules and potentially perform a nexus study for you.