Michigan tax on a rental property sold in Washington

[Pankajkr]

Long story short, I bought a property in the state of Washington that I didn’t get to live in and had to turn into a rental property. Had it for 3 years and sold in 2019 for decent profit. WA has no taxes but I am living in Michigan. Would I be paying taxes to MI for capital gains made in WA?

[KrisD15]

No, Capital gains from the sale or exchange of property located in other states is not taxable in Michigan

MI-1040 page 13. 

[Pankajkr]

Dear Kris

Thanks very much for your response. I want to clarify one thing. I am filing as a Michigan resident and not as part-time resident or non-resident. Your answer would still be applicable. Correct?

[DavidD66]

Yes, Kris' answer is for a resident (as opposed to a non-resident or part-year resident) of Michigan.  The amount of gain will have to be subtracted from federal income in the Michigan adjustments sections.