Couple Loses Bid to Claim New Mexico Credit for California Tax

New Mexico’s state tax agency properly denied a couple a credit to offset tax paid on rental income stemming from California property, the New Mexico Court of Appeals said Wednesday.

The New Mexico Taxation and Revenue Department and the Administrative Hearings Office correctly allocated the income to California since that’s where the property was located, and the income wasn’t apportioned to New Mexico, the opinion said.

• Daniel and Terezinha McGlynn argued the state violated the dormant commerce clause of the US Constitution—which prohibits discrimination on interstate commerce—because the couple was being double taxed on the same income
• “Taxpayers’ failure to ...