Hello BNO I wanted to ask if I live in Washington and invest in say Dallas would I need to file taxes in both states if I did a flip and made a profit.
Most likely you will have to pay taxes. Texas I do not believe has a state income tax so no state tax return per se. some states tax you as “non resident” at closing and you only have to file a return if you want to get some of it back.
This is definitely something you want to work out with your accountant.
@Tyrone Hardy es I believe you would. Although Texas does not have state income tax. So you wouldn’t have to file there.
I own rentals in Cleveland and Memphis (Tennessee doesn’t have state income tax), so I had to file a return for the city of Cleveland, the state of Ohio and North Carolina where I work and live.
No tax advice given
Thanks for the confirmation
If you have an entity like an LLC in Texas, you are subject to the state franchise tax. But you'll never pay it because the first (I think) $1.8Million in income is exempt.
But you do have to file a "no tax due" report with the Texas Comptroller every year. It's due May 15.
Washington and Dallas are 2 states without a state income tax. They do not require an individual income tax return to be filed with the state.
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