Do I have to pay taxes on CA rental income if I move to TX?

[Miguel Ochoa]

Hello all

If an investor has a few rental properties in California and decides he wants to move to a tax free state like TX how would the income generated from the California homes be taxed? And would you be able to write off losses from CA home if not living in the state? Thank you for your help.

[Jake Hottenrott]

@Miguel Ochoa - great question! An investor has to pay taxes where the income is generated as well as their state of residency. There are state tax credits and offsets that help to alleviate double taxation, but the general gist is that at the state level you'll pay taxes at the rate of the highest tax state whether that's where the income is generated or where you are domiciled. This is a great conversation to have with your CPA to help you plan where to move and where to invest and what your true ROI is! Best of luck!