Montana non-resident capital gains

Forum|Forum|5 years ago
February 16, 2021
2 replies
1 view

I am filing as a non-resident in Montana. I sold land in Montana (Capital gain). I have a non Montana capital loss tat reduces the Montana gain to $0. When going through the review for "Montana" income The program shows $0 for capital gains. Do I still need to report the gain as Montana Income?

JotikaT2

Employee Tax Expert

Yes, I recommend you still file your nonresident Montana return even though it shows $0 for capital gains.

Montana requires you file a tax return if your federal gross income meets the threshold shown below and if you have any income from Montana during the year.

Montana filing requirement

This will ensure the proceeds from the sale are reflected on your nonresident state return and matched to the information already reported on the sale on Form 1099-S.

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dhiggins17Author

Level 2

Do I override the 0 entry and put in my Montana Capital gain?

AmyC

Level 15

Yes. Montana wants to tax the Montana portion of your income. The land sale does need to have the tax paid in Montana. This state return should be done before your resident state. Your resident state will allow a credit for the tax paid to Montana. Therefore, prepare your state return last. If you have already done it, you may need to delete it. Then you can add it back to calculate the tax with the proper credit.

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