Does out of state owner need to file a tax return in Ohio?

[Keith Gilbey]

Hello, looking for some advice.

I live in California and last year purchased a single family rental property in Englewood (Dayton), Ohio.  I went to do my taxes for 2020 and my preparer told me I also have to file a return in Ohio on which I neither owe or get anything as it comes in at a loss due to depreciation.  A friend's tax preparer said that's wrong I don't file in Ohio, and another friend of who also lives in California has owned a similar rental property in Ohio for a couple of years said he's only ever filed in California, not Ohio.

I also just received a letter from the City of Englewood telling me that the rental of property for income within the city limits qualifies for local income tax at 1.75%.

Can anyone provide any insight in this?  Want to make sure I'm doing the right thing.

Thanks.

[Jack Smith]

Might want to check with a CPA for second and third opinions that knows your specific situation.  Typically, you file where the revenue is generated, regardless of whether or not you made any money (and now you'll probably make a little less!).  I've got to believe Englewood is going to want their tax share, too.  All the cities I invest in get their piece, even though I don't live in any of them.