TerryA
Intuit Alumni

State tax filing

Actually, since the property is located in Calif, Calif gets to tax any gain you may have had on the sale - that's why Calif tax was withheld on the sale in the first place. And AZ gets to tax it as well because your are a resident there.

To prevent double taxation, your Calif nonresident return will prepare a credit for the portion of the AZ tax attributable to that gain. (this is the opposite of the normal process of the Other State Tax credit is claimed on the resident state's return. residents of AZ, OR & VA do it this way.)

After completing your TT AZ return, run through the TT nonresident Calif return and look for the opportunity to prepare the Other State Tax Credit.

Enter the Calif tax withheld on the Form 593 as described (way) above to get it into the Calif return properly.