Out of State Investing? File a tax return?

[Matt Daley]

I live in PA and have a PA LLC... I am looking at purchasing investment properties in NJ. I was curious if anyone who has done this has had to pay any sort of tax or file a NJ State return? I just want to make sure I account for all of my figures when running the numbers. My accountant usually take a few days to get back to me and I may need to make a quick decision on 1 particular house.

Thanks!

[Natalie Kolodij]

Any state you earn income in you're considered in business in that state. 

You'll need to file there and there will likely be a credit system between states to avoid double taxation- but adding state returns to your filing will add cost to your annual fee with your CPA. 

Some states have no state tax, or no tax on rental income at lower levels, and avoid this: 

TX, FL, WA, Ohio in some situations