Yea, but the rental income from houses in California are taxable by the California FTB. That's a reasonable compromise. What's less clearly reasonable is whet

Yea, but the rental income from houses in California are taxable by the California FTB. That's a reasonable compromise. What's less clearly reasonable is whether a California resident should pay CA taxes on a rental house in, say, Guatemala, but that's also the CA FTB's position.