If you sold the property before you moved to Ohio, then it is not taxable by Ohio. When you go thru the income allocation screens identify it as CO income (the actual term may be "non Ohio income").
Incidentally, although Ohio taxes capital gains, the capital gain on the sale of a rental house qualifies for Ohio's Small Business deduction (SBD). So, even if you sold it after you moved, you would not pay OH tax on it.
Yes, you have to include all your Federal adjusted income (AGI) on your Ohio return, But, It only appears that Ohio is taxing all your
income.
Ohio does a convoluted tax calculation for non-residents/part year
residents. It calculates tax on total income, then it calculates a non
resident/part year resident credit, which it subtracts from the tax it
calculated on the total income. The credit is calculated as your non-Ohio
income divided by Total adjusted Income multiplied by the total tax. TurboTax
(TT) does this by allocating your income as either Ohio or non-Ohio. W-2
income will be allocated by the state name abbreviation shown in box 15 of your W-2. TT
will ask you, item by item, in the state section, how much of your other income
is Ohio or
non-Ohio income. Make sure that your non-Ohio wages show CO (Other state postal abbreviation) in box 15 of your W-2 screen, with the CO amount
in box 16.
This system allows Ohio
to apply their highest tax rate, based on your total income, while only taxing
your Ohio
income.
