Newbie : I live in Arizona Buying a property in OH Tax?

[Shamsul Chowdhury]

Hi,

I am  buying a property with Cash in OH, myself as the sole title holder. I live in Arizona. I will pay the local OH , City property tax for the property and will rent the property out. 

Question:

How do I avoid double taxation in both OH and AZ on my rental income? 

Since I do not live in OH, i do not plan to file a TAX return for state of OH.

I can move the title back to my LLC once I refinance the property, but for TAX purpose is there an issue to with keeping the property under my name as investment propertY

Thanks For Help

[Christopher Smith]

I file as a nonresident in Ohio for my Ohio rental properties (they are considered Ohio source income), and credit that amount in full against my CA tax (my resident state). Therefore no double taxation.

Every nonresident having Ohio-sourced income must also file. Examples of Ohio-sourced income include, but are not limited to, the following:

• Wages earned in Ohio (note: see "Exception" below);
• Ohio lottery winnings;
• All Ohio casino gaming winnings;
• Income or gain from Ohio property;
• Income or gain from a sole proprietorship doing business in Ohio; AND
• Income or gain from a pass-through entity doing business in Ohio.