You are required to report any income you receive from Arrived Homes on your tax return.

Arrived will send you the corresponding summarized tax disclosure form (specifically a 1099-DIV) for your investment by the end of January of the following year so that you can file your taxes appropriately. Investing in states that you don't live in will not trigger additional tax filing requirements. Any relevant state taxes are based on the state where an investor files their tax returns, not where the property is located. For example, if you live in California and invested in a property in North Carolina, you would only need to file Federal and California state tax returns. There would be no additional tax burden to file in North Carolina.

At the end of the investment period, Arrived will sell the property. Assuming that the property value has appreciated, Box 2a will be filled in with your capital gain. A capital gain is when you sell an asset for more than you paid for it. The tax rate on long-term gains is typically either 15% or 20%, depending on your income. Capital gains are often taxed at a lower rate than employment income, which is why Arrived structures investments for long-term holding.

For more details, check out this article on How Your Arrived Investment is Taxed. For specific guidance regarding your investment income and tax filing, consult a qualified tax professional.