Reporting South Caroline State Taxes Paid on Sale of Rental Property

[Chaosmix]

I sold a rental property I purchased in the Navy about 20 years ago in a South Carolina.  Apparently South Caroline prospectively takes a share of the expected capital gains taxes for the sale of any property in the state.  How do I report this in TurboTax so I can get it refunded?

[DavidD66]

You report the sale and the gain on your non-resident South Carolina tax return.  You may or may not be due a refund of the amount withheld, depending on the amount withheld and the tax on the  gain.  Have you been filing South Carolina returns each year to report your rental income/loss?  

[Chaosmix]

I have not been filing a SC return every year because it was always loss on paper.  I had carry over losses that were in excess of the amount I received in cash (the rest was rolled into another property through a 1031 exchange).

Do I not need to account for these taxes paid on my Federal income return?

[KrisD15]

The loss(es) had needed to be documented by filing a South Carolina return.

Then, when this property was sold, you would claim the remaining loss (if any) against the gain on the sale.

[TomD8]

"How do I report this in TurboTax so I can get it refunded?"

You report the SC taxes withheld in the federal section of TT, under Estimates and Other Taxes Paid.  The information will carry over to your SC state return.