I have long-term capital gains from selling a rental property in CO and I live in MA and these capital gains look like the are also taxed in MA. CO is taxing correctly

[d-neitz]

I went into the B/D Capital Gains sheet for MA and checked the box "non MA" for the CO rental property sale, but it didn't seem to reduce my MA taxes

[Zbucklyo · Accepted solution]

If you've done things properly, you've automatically gotten a credit on your MA tax return for the taxes paid to Colorado.  That's how it works - MA taxes you on your worldwide income, but gives you a credit for taxes paid to other jurisdictions.  I don't really know how things work online, but there should be a Tax Credit Worksheet (Colorado) in your MA return if everything is working.