I'm filing my State (MD) with Turbo Tax and it's counting all of my capital gains from a sale of a rental house from an out of state asset (TX). No State Tax in TX?

[cskubik]

Can I back out the Capital Gains from these out of state rental sales (multiple).  How do I do it within Turbo Tax?  Doesn't seem right that I should be taxed in MD for income received from another state.

[MichaelL1]

Your resident return will tax all income regardless of where earned.

If you paid taxes to another state if will then give you a credit, however in TX there is no state income taxes.

If you had a loss on renting the property for the last few years, it would have also been deductible on the resident return.