I am amending a 2021 New Mexico Tax Return where I am a resident. In 2021, I sold property in Montana and paid Montana the income taxes that were due (as a result of capital gains).
The purpose of the amended return for New Mexico was due to an amended 2021 return for Iowa which had farm income. I did a 1031 exchange for most of the Montana property sale money. I bought farmland in Iowa. The money that was leftover from the 1031exchange was the capital gain.
When I run Turbo Tax 2021 it calculates a credit for taxes paid to Montana (capital gains) and Iowa (farm income). Someone from the New Mexico Taxation department said they don't give credit for capital gains taxes paid to another state. Has anyone had a problem for tax credit specific to capital gains?
