@DawnC does that situation apply to all states? I am a Hawaii resident, and I sold a rental property in Virginia. I'm using TT Premier (download) and I did my nonresident Virginia return first and was taxed on my capital gains from the rental property sale. Then when I did my resident Hawaii return, it showed my HI net capital gain as a number that was the sum of the cap gains from the rental property plus the cap gains I have from my investments. Why should Hawaii count the cap gains from the sale in Virginia? That affects the subsequent calculations... it causes my taxable income to be 201K higher, and I am being taxed 7.25% on that. So bottom line, I will pay tax to HI and tax to VA on the same cap gains from sale of the rental property in VA. That doesn't seem right?
