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Tennessee rental house sold, would the sale be excluded from Louisiana tax return?

Futch2010
Level 2

Client lives in Louisiana but has a rental house in Tennessee.  The house sold in 2020 and the income from the sale is flowing from the 1040 into Louisiana.  Is that correct?  Should the sale be excluded from the Louisiana tax return?

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sjrcpa
Level 15

It's correct. A Louisiana resident is taxed on all their income, from wherever.

If they have to pay tax to TN on this income, they can get a credit for it on the LA return.


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sjrcpa
Level 15

It's correct. A Louisiana resident is taxed on all their income, from wherever.

If they have to pay tax to TN on this income, they can get a credit for it on the LA return.


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dd4vols
Level 9

No state income tax in Tennessee on this type of transaction. And 2020 is the last year for the Hall Income Tax, which taxes certain non-bank type commercial paper interest, and flow thru earnings of Mutual funds, and certain other dividends.

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sjrcpa
Level 15

Thanks for the TN tutorial. I knew it was different.


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