U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Tennessee
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 03-04-2008, 03:24 PM
 
1 posts, read 12,773 times
Reputation: 14

Advertisements

I'd appreciate it if someone could clarify the following:

Does an individual who does not live or work in Tennessee but owns a house strictly for investment purposes (rental) need to file a Tennessee state tax return?

Thanks in advance.
Rate this post positively Reply With Quote Quick reply to this message

 
Old 03-04-2008, 04:10 PM
 
12,755 posts, read 35,860,173 times
Reputation: 9994
Quote:
Originally Posted by tylerzero View Post
I'd appreciate it if someone could clarify the following:

Does an individual who does not live or work in Tennessee but owns a house strictly for investment purposes (rental) need to file a Tennessee state tax return?

Thanks in advance.
Tennessee has no state income tax except for stock dividends, so I'm not sure why you would pay a state tax on rental property. You would pay local property taxes, but that's it. I think.

Have you called the county clerk's office in the county where you own property?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 03-04-2008, 04:12 PM
 
Location: The Conterminous United States
22,583 posts, read 50,407,192 times
Reputation: 13546
That's the kind of question one asks their accountant.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 12-29-2014, 12:26 PM
 
2 posts, read 16,754 times
Reputation: 10
Tennessee state tax department taxes on interest and dividend on the Individual Income Tax Return. If you only have rental income, you don't need to file the TN state income tax.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 01-28-2015, 12:50 PM
 
3 posts, read 24,757 times
Reputation: 15
my accountant said YES. I just called the Tennessee Department of Revenue. They said YES.
Penalties and Interest will be due back to the date you PURCHASED the property in their state.
It is under the State FRANCHISE and EXCISE tax.
Franchise tax is based upon the property value
Excise Tax is based upon the income from the rental

WASS!!! (we are so screwed)
Paid MORE tax on a stupid $70,000 rental in TN than I did on our $300,000 rental in CA!
Rate this post positively Reply With Quote Quick reply to this message
 
Old 01-28-2015, 01:58 PM
 
Location: The Conterminous United States
22,583 posts, read 50,407,192 times
Reputation: 13546
Quote:
Originally Posted by ry-hab View Post
my accountant said YES. I just called the Tennessee Department of Revenue. They said YES.
Penalties and Interest will be due back to the date you PURCHASED the property in their state.
It is under the State FRANCHISE and EXCISE tax.
Franchise tax is based upon the property value
Excise Tax is based upon the income from the rental

WASS!!! (we are so screwed)
Paid MORE tax on a stupid $70,000 rental in TN than I did on our $300,000 rental in CA!
Get another accountant. Is he/she in Tennessee?

Family owned can be an individual.

See below. Also check out entire link it will explain all of it:

How does an entity claim the family-owned exemption?
A non-corporate entity which believes that it qualifies as a family-owned entity with substantially all of its income from passive investments and/or farming so as to be exempt from franchise, excise taxes under Tenn. Code Ann. Section 67-4-2008(a)(11) must initially file an Application for Exemption form with the Department of Revenue's Taxpayer Services Division. The form, with instructions is available on the Department's website at Forms.

The form must be signed by an owner, member or partner of the entity claiming the exemption. In order to maintain the exemption, the entity must file a renewal application annually by the 15th day of the fourth month following the close of the entity's tax year. The completed form should be mailed to:
Tennessee Department of Revenue
Attn: Taxpayer Services Division
500 Deaderick Street
Nashville, TN 37242.

Two criteria must be met in order to qualify for the family-owned non-corporate exemption:
At least 95% of entity's ownership must be held by family members, and
Substantially all (66.67%) of the activity of the entity is either:
The production of passive investment income, or
The combination of the production of passive investment income and farming.
For this purpose, "Passive investment income" is defined as gross receipts derived from royalties, rents, dividends, interest annuities, and sales or exchanges of stock or securities.

Franchise & Excise Taxes Frequently Asked Questions
Rate this post positively Reply With Quote Quick reply to this message
 
Old 01-29-2015, 09:22 AM
 
2 posts, read 16,754 times
Reputation: 10
No filing is required. If anyone who is not a resident of Tennessee has question on whether he/she should file a Tennessee State Income Tax for just having rental income in Tennessee Please contact their State Revenue Department Contact Us at 1-800-342-1003.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-11-2015, 03:09 PM
 
3 posts, read 24,757 times
Reputation: 15
Exclamation TN rental - reply

Quote:
Originally Posted by tylerzero View Post
I'd appreciate it if someone could clarify the following:

Does an individual who does not live or work in Tennessee but owns a house strictly for investment purposes (rental) need to file a Tennessee state tax return?

Thanks in advance.
DEAR TYLER

YES is the short answer. I was stung with this last year.
I have done a tremendous amount of research and would gladly chat about it in specific detail if you desire.
However, I did find the folks at the Franchise/Excise Tax board to be very helpful - 615-253-0600

Long and short. They require both Franchise AND excise tax on rentals.
Franchise tax is based upon VALUE of the property. THis is your BOOK value - which could be minus any depreciation your accountant is carrying for you. OR it could be actual value minus any indebtedness you have (ie Mortgage)
Excise Tax is the INCOME from your rents - minus any repairs or expenses.
BOTH of these taxes are due annually!

SUCKS

However, there are a FEW exemptions available. This is where talking to someone at the tax board helps. They don't want to share these exemptions readily - you gotta really PRY.

You can research the FONCE exemption - it needs to be applied for EACH YEAR - they CAN DENY it. This has specific parameters - most important detail to me is/was that you can only own LESS than 4 rentals ands still qualify for FONCE.

Hopes this helps.
Reply and I will figure out how to continue the conversation if needed.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-11-2015, 03:15 PM
 
3 posts, read 24,757 times
Reputation: 15
Quote:
Originally Posted by HARDMCY View Post
No filing is required. If anyone who is not a resident of Tennessee has question on whether he/she should file a Tennessee State Income Tax for just having rental income in Tennessee Please contact their State Revenue Department Contact Us at 1-800-342-1003.
sorry to contradict HardMcy
tax is required - and any questions should be referred to the TN State Franchise/Excise Tax board directly.
I did a tremendous amount of research on this topic after being stung last year.
Unless you qualify for an exemption / (we DID luckily) you must pay franchise and excise tax annually

Contact information for the TN Tax Board is 615-253-0600
Contact Us
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-11-2015, 03:19 PM
 
Location: Brentwood, Tennessee
49,986 posts, read 51,791,855 times
Reputation: 98359
Quote:
Originally Posted by ry-hab View Post
DEAR TYLER

YES is the short answer. I was stung with this last year.
I have done a tremendous amount of research and would gladly chat about it in specific detail if you desire.
However, I did find the folks at the Franchise/Excise Tax board to be very helpful - 615-253-0600

Long and short. They require both Franchise AND excise tax on rentals.
Franchise tax is based upon VALUE of the property. THis is your BOOK value - which could be minus any depreciation your accountant is carrying for you. OR it could be actual value minus any indebtedness you have (ie Mortgage)
Excise Tax is the INCOME from your rents - minus any repairs or expenses.
BOTH of these taxes are due annually!

SUCKS

However, there are a FEW exemptions available. This is where talking to someone at the tax board helps. They don't want to share these exemptions readily - you gotta really PRY.

You can research the FONCE exemption - it needs to be applied for EACH YEAR - they CAN DENY it. This has specific parameters - most important detail to me is/was that you can only own LESS than 4 rentals ands still qualify for FONCE.

Hopes this helps.
Reply and I will figure out how to continue the conversation if needed.
Quote:
Originally Posted by ry-hab View Post
sorry to contradict HardMcy
tax is required - and any questions should be referred to the TN State Franchise/Excise Tax board directly.
I did a tremendous amount of research on this topic after being stung last year.
Unless you qualify for an exemption / (we DID luckily) you must pay franchise and excise tax annually

Contact information for the TN Tax Board is 615-253-0600
Contact Us
Are you taking about COMMERCIAL property????

I know LLCs are subject to the F&E tax, but the FONCE exemptions are pretty clear.
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Settings
X
Data:
Loading data...
Based on 2000-2020 data
Loading data...

123
Hide US histogram

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Tennessee
Similar Threads

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top