If the property was sold at a gain, you will pay
capital gains tax on your Federal return. You
will also be subject to income tax on a non-resident Delaware return and income
tax on your resident Maryland return for the sale of the property.
A non-resident Delaware return is required if you receive
income from a Delaware source. Work on
this return before you complete your Maryland return.
Your resident Maryland return will also include the income from
the sale transferred from your Federal return.
However, since Delaware will be taxing that same income, you should be
able to get a tax credit on the Maryland return to help offset the taxes paid
to Delaware. Watch for the screen titled
“Other State Tax Credit Summary”
when you are working through the Maryland return. Click Edit
beside the entry and verify the information from the Delaware return to
calculate the credit.
