SOUTH CAROLINA RENTAL

[TAXMAN]

I know that SC does not allow a resident a rental loss incurred in another state(VA). If TP sells rental and has a gain/loss for federal does SC allow the loss or tax the gain? I have not been able to get a straight answer from SC. Thanks

[Terry D EA]

I could be wrong but I am not aware of any where that a loss of rental income is allowed. I do know that SC does not require one to pay capital gains tax on property sold in another State.

[tkamba]

Rental Income and sale normally go to the state that the property is located. I have had 2 clients come to me with this issue, one in Hawaii and another in CA. In both states, the Revenue Department held an escrow from the sale of the property until past returns were filed and it was proven that they did not owe taxes to those states. IL would give a credit to the taxpayer if they paid taxes but they do not get the write off for the rental losses from another state.

[joanmcq]

SC is an aberration, they don't tax an out of state rental, but neither do they allow a loss from one.

[Terry D EA]

Exactly, no gains either so no loss.