Tax withholdings for investment property?

I heard there is no tax withholdings for a CA resident if investment property is in NV, because NV is a no tax state. Is this true?

I think I asked the Q wrong. The escrow company when I closed the home said since I don't live in NV I don't need to withhold 3 1/3 right now and I will just file end of the year. But my accountant says I still need to send in the estimate now and then the rest of the tax if needed end of the year.

Income taxes on an investment in Nevada are taxable to a California resident. The issue here is not where the investment/profit is generated, but where the recipient of those profits resides.

The issue of non-withholding is quite irrelevant. What counts is the tax return filed at the end of the fiscal tax year.

It sounds like maybe the escrow company was talking about some kind of state tax.

For federal, your accountant is correct - either pay quarterly estimates on your investment income, or be subject to penalties if you don't have enough withheld.

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