@KurtL1 - I doubt this sale of property qualifies for the VA capital gains deduction, which is limited to certain business assets. "Income taxed as a long-term capital gain, or any income taxed as investment services partnership income for federal tax purposes is allowed as a subtraction provided the income is attributable to an investment in a 'qualified business' ". See https://www.tax.virginia.gov/subtractions#long-term-capital
However, the taxpayer would be allowed a credit for the tax paid to MD
