tax impact by different states
1 Reply
Dave Chow
Investor from KS
posted over 3 years ago
Basit Siddiqi
Accountant from New York, NY
replied over 3 years ago
I am a little confused from your description.
You live in Missouri and have investments in Missouri. However, you are looking to also invest in Kansas and see what the tax implications are?
As a Missouri resident - you will be taxed on worldwide income.
1) you would file a Kansas non-resident return and report the Kansas rental income/loss and pay taxes(if applicable)
2) you would file a Missouri resident return and also report the Kansas rental income/loss. You would then get a credit for the taxes you paid to kansas.(the credit may not be 100% of the taxes paid to kansas).
Sometimes - neighboring states have reciprocal agreements where you may not have to file a nonresident state return with the other state. however, it doesn't appear to be the case with Kansas and Missouri.