Using desktop premier to enter sale of second home in another state

[MPtaxguy]

I've figured out how to add the sale in the investments area.

How do I specify that the sale of the home was in another state so that it feeds the capital gain to the state products properly?

Right now, the capital gain appears to be allocated to my state of residency and not the state where the second home was located.

[rjs]

All of your income is taxed by the state that you live in, no matter where the income is from. The state that the second home is in will also tax the income from the sale. In most cases, you will get a credit on your resident tax return for the tax that you pay to the other state, but there are some exceptions. If you tell us what state you live in and what state the second home is in, someone might be able to give you more details. Every state has different rules.

In the Personal Info section, did you answer Yes when TurboTax asked whether you made money in another state?

[MPtaxguy]

Thank you.  State of residence = Georgia.  Second home that was sold was in South Carolina.

[rjs · Accepted solution]

For Georgia and South Carolina it should work as I described above. You include the gain from the sale on both state tax returns. On your Georgia tax return you will get a credit for part or all of the tax that you pay to South Carolina. Prepare your South Carolina nonresident tax return first, then your Georgia resident tax return, so it can calculate the credit. I'm not familiar with these particular states, but at some point in the South Carolina interview it will ask you to identify what parts of your income are from South Carolina.

[MPtaxguy]

Thank you for this useful advice.