Out of state investor tax filing question

Investor · Boerne, TX · Member since 2015 · 139 posts · 71 votes

Hello all! I own a duplex in the city of Cleveland and would like to know if I need to file a tax return with the City as well as the state. I viewed the website and found a form that appears to be for rental income but it looks like it is for residents (or maybe both?). I am not looking for tax or legal advice, just want to ensure I am filing the correct form.

Thanks!

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Gwen Fyfe

Rental Property Investor · Cleveland, OH · Member since 2016 · 227 posts · 287 votes

Originally posted by @Sunny D.:

does this apply even if reported net loss in my federal filing after accounting for mortgage interest, depreciation and expenses for maintainence and when acquiring the property

i didnt file a city of cleveland return nor state as there was no net income

Yes, you still need to file.

City of Cleveland taxes are collected by the CCA (one of two contractor organizations that deal with municipal tax in Ohio, and definitely the nastier of the two.) According to the CCA rules and regulations for the city of Cleveland:

5:01.I "Any person receiving rental income from any property must file a return whether or not there is any tax due."

Disclaimer: I am a tax professional, but I'm not your tax professional and don't know all the details of your situation. Just giving some solid general information here.

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Federico Gutierrez
Realtor · Cleveland, OH · Member since 2015 · 2k+ posts · 857 votes
8y
YES, you need to pay your % to the city of Cleveland.
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Sunny D.
Pleasanton, CA · Member since 2015 · 246 posts · 115 votes
8y
does this apply even if reported net loss in my federal filing after accounting for mortgage interest, depreciation and expenses for maintainence and when acquiring the property
i didnt file a city of cleveland return nor state as there was no net income
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Gwen Fyfe
Rental Property Investor · Cleveland, OH · Member since 2016 · 227 posts · 287 votes
8y
Originally posted by @Sunny D.:

does this apply even if reported net loss in my federal filing after accounting for mortgage interest, depreciation and expenses for maintainence and when acquiring the property
i didnt file a city of cleveland return nor state as there was no net income
Yes, you still need to file.
City of Cleveland taxes are collected by the CCA (one of two contractor organizations that deal with municipal tax in Ohio, and definitely the nastier of the two.) According to the CCA rules and regulations for the city of Cleveland:
5:01.I "Any person receiving rental income from any property must file a return whether or not there is any tax due."
Disclaimer: I am a tax professional, but I'm not your tax professional and don't know all the details of your situation. Just giving some solid general information here.
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Noam Ofan
Investor · El Cerrito, CA · Member since 2015 · 108 posts · 26 votes
8y
@Federico Gutierrez and @Gwen Fyfe - Does this apply to my rentals in South Euclid, Maple Heights and Garfield Heights or is this only for rentals within Cleveland, OH ?
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Gwen Fyfe
Rental Property Investor · Cleveland, OH · Member since 2016 · 227 posts · 287 votes
8y
Originally posted by @Noam Ofan:

@Federico Gutierrez and @Gwen Fyfe - Does this apply to my rentals in South Euclid, Maple Heights and Garfield Heights or is this only for rentals within Cleveland, OH ?
Welcome to the weird and wonderful world of Ohio municipal tax returns! Every city in Ohio does their own thing. I spend as much time doing city tax returns as federal for a lot of my clients.
Garfield, Maple and South Euclid are all RITA cities. (The other big municipal tax contractor.) So, you need to look at the pages for those cities on RITA's website and look through their rules, then file a RITA return if necessary, or hire a local tax professional to do it.
Garfield Heights
Maple Heights
South Euclid
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Gwen Fyfe
Rental Property Investor · Cleveland, OH · Member since 2016 · 227 posts · 287 votes
8y
(It's not actually wonderful. It's freaking ridiculous.)
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Noam Ofan
Investor · El Cerrito, CA · Member since 2015 · 108 posts · 26 votes
8y
Thank you, @Gwen Fyfe !!
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Gwen Fyfe
Rental Property Investor · Cleveland, OH · Member since 2016 · 227 posts · 287 votes
8y
You're welcome! Best of luck!
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Miguel Nava
Rental Property Investor · Houston, TX · Member since 2016 · 91 posts · 38 votes
8y
what about Cleveland Heights? That is where mine is. Thanks, Miguel
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Steven Gillmer
OP
Investor · Boerne, TX · Member since 2015 · 139 posts · 71 votes
8y
Thanks for all the input, I was able to print up the form and mail it in.
Follow up question:
As I was reading the instruction booklet, it states that I need to pre-pay at least 90% of the estimated tax no later than December 15 of the current year or I could pay interest and penalties. Has anybody done this for a CCA tax juristiction? Seems kinda weird that they want their money before I even file my return.
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Basit SiddiqiBusiness Member
Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
8y
@Steven Gillmer

The IRS/States normally require that you pay gradually throughout the year instead of all at once on April 15th.

When we earn wages through our employer - the employer w/h's federal and state income taxes from us and transmits it to the IRS/State.

This is the same with most state forms. They normally want estimated payments throughout the year(April 15, June 15, September 15, December 15).

One thing to look out for is that you may be exempt from paying an estimated tax if your prior year liability is $0 or if it is your first year of filing.
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