I am a resident of MA and sold a rental property in SC this past year.
I filed an i-290 with SC and the at the sale, they withheld taxes as 7% of recognized gain.
In turbotax, I reported the sale of rental property on my federal return, which showed up as a capital gain after taking the 1099-S value and subtracting the cost basis.
1) How can I report the sale's gain on my SC state turbotax return so that it is properly related to the "Sale of Non-Resident withholding" (ie i-290) amount that I entered on the SC form?
I tried to input the gain as a capital gain in the SC return, but that made it a 5% cap gain, and my MA return sees it as 5% income and says it is not creditable.
2) How can I have my MA return properly reflect the SC tax paid so I don't pay tax twice on my SC sale?
Thanks!
