Tax Return Required for Kansas City?

2 Replies

I live in California and am going to be purchasing a rental property in Kansas City, MO. Do I need to file a tax return in MO as well? When I go to write off mortgage interest and depreciate my property, can I do that on my CA tax return or is that only valid on a MO tax return?

@Codi Clausen

Each state is different in regards to requirements of filing a non-resident state tax return. Some states base the filing requirement on income or gross receipts. Regardless of the requirement to file, you may want to file within the state even if there is no requirement to file to establish an NOL within the state(if the state allows for it).

Regarding your question
You are required to file a CA resident tax return because you are a resident within the state. You will be reporting world-wide income on your CA return which includes your investments in MO. 

There are a lot of city/county tax returns. Again - each city/county tax return is different but most only require a tax return to be filed if there are wages earned within the jurisdiction. 

My accountants handle mine so I don't know all the details, but I have a GA return in addition to my CA return.

I recommend at least chatting with an investor-friendly accountant. Not so much to confirm the MO return or not, that's probably easy, but to make sure you know how to take advantage of all the benefits a property offers. The laws change all the time and I know when I tried to do my taxes myself once I had properties, I was missing the boat all over the place on grabbing up all of those benefits.