Real Estate Agent · Portsmouth, RI · Member since 2016 · 22 posts · 13 votes
I'm new to REI. I have a question about living in RI and investing in MA. Specifically, I am interested in purchasing a small multi-family in Ma. Is it more difficult to do because I live in RI? what about when I file my taxes, will I have to file MA state taxes also? I used to work in Ma, and it was a pain every year having to file Ma and RI state income taxes. I basically ended up owing in one state and getting a refund in the other, so they were essentially a wash.
Lender · Tyngsboro, MA · Member since 2009 · 3k+ posts · 2k+ votes
9y
It isn't "difficult" to buy in another state, but there are definitely additional layers of administration. If you buy in your own name, the income and expenses will go on Schedule E, but yes, you will most likely (depending on amount of income) have to also file in MA as well as RI.
Why not buy in RI? There are plenty of multis in RI, and there is a group there you should check out. RIREIG.com. Laws in MA are very tenant friendly, so I see no reason to jump the state line when you have lots available in your backyard.