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Updated about 2 months ago, 10/28/2024
Understanding Tax Obligations (CLE, OH)
Hello, I live in a Columbus, OH suburb and want to buy an investment property in Cleveland, OH.
I pay local taxes in the city that I work in, as well as the city in which I live. From online research, I was able to find out that other cities in Ohio tax all your income (w2 & rental income) if you own a property there & some give you a small credit for taxes paid to other cities.
My question is, if I buy a property in Cleveland (or a CLE suburb), would my w2 income be taxable in Cleveland (or a CLE suburb)?
If so, how do I get around this or at least make it to where only the rental income from the property is taxable locally? Would I achieve this if I transfer the property to an llc after buying it?
Would it be better to just try investing in a different states than the one I live in?