Question

Sgt Bryan Antler has a California domicile and was stationed in New Jersey for the entire...

Sgt Bryan Antler has a California domicile and was stationed in New Jersey for the entire year of 2016. In 2016 he had rental income of $17,000 (with $7,000 in expenses) from a California rental property and $30,000 from military income earned while stationed in New Jersey. Does he have to pay tax on the rental income and if so, how is it reported?

No, because he can subtract his military wages in Column B of Schedule Ca(540NR) thereby falling below the California filing threshold.

California will not tax rental property owned by a military servicemember, it does not have to be reported.

Because Bryan is stationed outside Califoriia, he is not required to ifile a California return.

Bryan does not subtract his military wages in Column B Schedule Ca(540NR) and pays taxs on the net rental income

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