I sold my rental property in California and paid $55,000 in California taxes.
On my Massachusetts resident return, I have to show the gain and the tax at MA rates is around $35k. However, the credit that Turbo Tax calculate is only $4k because it bases it on Schedule 1 line 10 income which excludes the long-term capital gain. Is this correct and I have to pay income tax in two states on the same transaction.
