topic LDo I have to file a SC state tax return if I lived in NJ for 2018 and sold my house in SC (which I have not lived in or rented out for 5 + years)? in State tax filing

LDo I have to file a SC state tax return if I lived in NJ for 2018 and sold my house in SC (which I have not lived in or rented out for 5 + years)?

djslota — Sat, 01 Jun 2019 21:19:41 GMT

Father now lives in a Memory Care facility in NJ and had to sell his home in SC to help pay for the cost of the Memory Care facility. He has not lived in or rented out his SC property for 5 + years.

Does my father have to fill out a SC state tax?

In other words, do I need to purchase a TT state tax return for SC?

If there was a gain on the house sale, then yes you will...

DanielV01 — Sat, 01 Jun 2019 21:19:42 GMT

If there was a gain on the house sale, then yes you will file a SC return. Since the property is located in SC, and since the sale of primary residence exclusion does not apply (hasn't lived there in 5 years), any gain on the home is taxable, which means that SC can tax the income because the property was located in SC. NJ also taxes the income but will give a credit for taxes paid to SC to reduce the effect of double-taxation. To have the credit for SC taxes transfer over to the NJ return, prepare the SC return first.