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

[MaryK1 · Accepted solution]

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.