Owner paid taxes to the state he lives not where rental is

[Mat O'Grady]

Hey Everyone, I am talking to an owner of a building who is looking to sell. He disclosed to me that he has been reporting his income and paying taxes in the state he lives in, not the state that the rental property is in. He has owned the property for a very long time and he has been doing his taxes the same way.

Has anyone run into this? Anyone know the repercussions for the seller?