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stratus7277
New Member

If I live in NC, but sold a rental home in IL, is there a state tax liability? If so, how is it calculated?

 
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MaryK1
Level 9

If I live in NC, but sold a rental home in IL, is there a state tax liability? If so, how is it calculated?

If you are a NC resident that sold property in IL, you would have to file an IL nonresident state tax return if you had taxable gain on the sale and you would be taxed on the gain income (if any) for the sale.  You would also have to report the income on your NC tax return, but you would get a credit for the tax paid to IL so it is not double taxed.

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MaryK1
Level 9

If I live in NC, but sold a rental home in IL, is there a state tax liability? If so, how is it calculated?

If you are a NC resident that sold property in IL, you would have to file an IL nonresident state tax return if you had taxable gain on the sale and you would be taxed on the gain income (if any) for the sale.  You would also have to report the income on your NC tax return, but you would get a credit for the tax paid to IL so it is not double taxed.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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