Yes, the timber sale would be included in your state return. Record the sale in your federal return in the Investment section and the capital gains income will carry to your state return. You may also need to file an Alabama nonresident return. According to the Alabama department of Revenue, you must file a return if Alabama income exceeds the allowable prorated exemption.
If an Alabama return is required in your situation, complete the nonresident state return before your resident state for proper calculations.
Who has to file an Alabama return?
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