what are the legal/tax implications if i live in texas and inherit a house/property in oklahoma?
if i am getting rent money from that house, am i going to pay oklahoma state income taxes every year or just the property taxes?
what are the legal/tax implications if i live in texas and inherit a house/property in oklahoma?
if i am getting rent money from that house, am i going to pay oklahoma state income taxes every year or just the property taxes?
you will be paying both.
screw em...don't tell nobody nuthin its yours
COLD DEAD HANDS!!! jihad
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thats what i was afraid of, and to file oklahoma state income taxes, i'd have to include my other income...might need to just sell that propertyOriginally Posted by frankensooner
Are you sure? I'm pretty certain only the income earned in Oklahoma is subject to OSIT.
yes, only income EARNED in oklahoma, which would be the rental income, less expenses...
i seem to remember, when i was stationed at fort sill, and filing a joint return with my wife who worked in oklahoma (i was a texas resident), having to include my income on her OSIT return...
fuzzy memory as its been since the late 80's
but if youre right, i'll keep it!
Now when you die, of course, the property will have to be probated in Oklahoma, but hey, that won't be your problem!
I would spend some of the rent money on making improvements to add to its value in case you do decide to sell. If you rent it out, get 1st and last months rent and a hefty deposit. Also ask for 5 references and check them throughly. That will help to weed out the rif raf. Having bad renters is a nightmare.
Inheriting the House: No income tax of any kind. May be some Federal and/or Oklahoma estate tax if the estate is large enough.
Renting the House: Will be subject to tax by Oklahoma by virtue of being located in Oklahoma. This would require you to file an Oklahoma income tax return for yourself individually or an entity you create to own the house (highly advised if a rental). It is doubtful you would recognize any net income after taking into account property tax and depreciation.
If you live in one state and own real property in another, for the love of god, transfer the real property into a trust or entity (LLC) to avoid having to do two probates.
I know a guy who will burn it to the ground and make it look like like an accident if you'll give him a fourth of he insurance proceeds. A third if he has to make sure no one's home first.
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