Can I claim exemption on capital gains in Oregon?

Can I claim an exemption for tax on gains of rental home sale in Oregon because I will be taxed on these gains in Montana where I am a resident?  Form OR-18 and Form WC (Oregon) are the forms I'm working on.   Or is there a partial exemption I can take given that MT and OR have different rates of taxation on capital gains.  My goal is to receive maximum proceeds from the sale rather than pay expected taxes at too high a rate if I can claim some exemption from Oregon capital gains tax rate.  Moreover, MT won't take taxes until they are due.


DDollar
Expert Alumni

Investors & landlords

Because the house was in Oregon, you will have to pay tax to Oregon on the gain.  The gain is also taxable in Montana since that's your state of residence; however, you will receive a credit on your Montana tax return for the tax paid in Oregon. If the tax on gain in Oregon is more than Montana, you will only receive a credit for the amount of the Montana tax.

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