Sale of Rental in another state

[EdChicago]

I live in Illinois, retired. We sold a rental property in Michigan. We have no other income there. I did the nonresident MI tax return forst, but it seems to be including all of my Illinois income on the form. It seems to me that the only thing that should go onto the MI tax form is the gain from the sale. The way it is being done, YtuboTax is having me pay no capital gains tax in MI but all of it in IL. Am I missing something?

[Anonymous_]

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@EdChicago wrote:

It seems to me that the only thing that should go onto the MI tax form is the gain from the sale. 

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The state versions of TurboTax typically require more user intervention. For example, you will most likely need to go through your MI return and enter zeros in the sections of that return that were transferred from your federal return, leaving only the capital gain from the sale.

[EdChicago]

How do I enter zeros into the MI return.  If I go to the forms view, it doesnt let me change anything.

[Anonymous_]

Does the program not take you through the MI return in Step-by-Step Mode? It will take me through Illinois in that mode and Illinois is a non-resident state for me.

[EdChicago]

It did not. It just preloaded info from my Federal return with no option to change anything. i had to go in and override things. That worked. But now the problem is that I selected efile, paid for the efile for both states, but then it wouldn't accept the efile because I had overridden entries in order to put in zeroes. I can do paper file but (1) I had already paid for efile and (2) now Turbotax thinks I am going to efile "later".  To be honest, I expected Turbotax to be much more robust in doing this. I feel like I bought Premier for nothing.

[EdChicago]

All the income numbers were preloaded and I had no opportunity to change any of them, almost as if I was a MI resident. The only way I could accomplish it was using overrides and I think I got to the correct result, but now I will keep getting reminded to efile. I plan on filing by paper anyway and hope that works out ok.