Sale of second home in a different state

[Mazkot2022]

Sold a second home in a different state than my primary home.  Do I need to file capital gains in the state that I sold the property in?

[rjs · Accepted solution]

Yes, you have to file a nonresident tax return in the state that the property is in. The gain from the sale is taxed by that state.

In most cases, if you live in state that has income tax, you will get a credit on your tax return for the state you live in for part or all of the tax that you pay to the other state. There are a few states where the nonresident state gives the credit.

[Vanessa A · Accepted solution]

Generally, yes.  Most states require you to file a return to pay capital gains on the sale of a property in that state even if you did not live in that state.  Different states classify the sale of the property in different ways, however, they still want the profit listed so it can be taxed. 

[Mike9241]

maybe.  some states do not have a personal income tax so the sale is not reported.