James Yee posted over 1 year ago Hello!My name is James and I joined Bigger Pockets at the recommendation of my real state agent. This place seems really great and I am looking forward to engaging with like-minded folks.I live and work in MA and am looking to buy a low cost investment property in NH. I am actively looking at condos in the sub 100K range and what I am trying to figure out is the tax situation when it comes to a MA resident owning a rental property in NH.I've asked many people and even left messages with tax offices, but have not been able to get any answers. It's very weird! I've tried (unsuccessfully) to find information on the internet and am chalking it up to my weak Google Fu...Any information would be greatly appreciated!
Basit Siddiqi Accountant from New York, NY replied over 1 year ago @James Yee It is the start of tax busy season so it will be hard to call an accountant now and ask them to answer a question unless you are already a client of theirs.The short answer is that you will be required to file a MA resident tax return(as you normally would do) plus potentially filing a NH non-resident tax return.NH is a unique state that it does not tax all types of income. They only tax Interest and Dividends. As such, you may only need to file a MA resident tax return.Adding a rental may or may not decrease your tax liability.