I sold a rental in Colorado, which increased by federal income significantly. Let's say 100K. Then, I moved to Ohio. In Colorado, I qualify for an exemption to the capital gains, so yippee, I don't have to pay state taxes on the gains (it wasn't my primary home, but there was another Colorado exemption). But when I went to file my state taxes in Ohio, the program copied over my entire federal income, which included the 100K, so Ohio taxes the 100K as if it was regular income. I didn't pay Colorado taxes on it, so I can't claim "taxes paid to another state" as a deduction. Is that right?? I have to pay state taxes on a property I sold in Colorado before I moved to the state???? If not, how do I reduce the income for Ohio by the capital gains from the sale of the property?
