topic Moving to Maryland, capital gain tax for selling investment property in Florida in State tax filing

Moving to Maryland, capital gain tax for selling investment property in Florida

sunye0611 — Fri, 03 Jul 2020 15:29:07 GMT

I have an investment property in Florida, and as I am moving to Maryland, I am selling it. Do I own Maryland state tax / capital gain tax or any other related tax for selling this property? Does it matter whether the closing happen before or after establishing a Maryland residency? I am moving to Maryland in July, so I understand that I have to pay state tax for the whole year. Thank you!

Re: Moving to Maryland, capital gain tax for selling investment property in Florida

GiseleD — Tue, 07 Jul 2020 17:33:39 GMT

Maryland begins its calculations with federal AGI. The capital gain on this property will be included in your AGI. However, part-year residents include a subtraction for income received while a nonresident. So the timing of your closing and when you establish residency are important.

Re: Moving to Maryland, capital gain tax for selling investment property in Florida

TomD8 — Tue, 07 Jul 2020 18:24:37 GMT

Your residency in MD is "established" on the day you begin living in your new permanent home (your new domicile, in tax terminology) in MD. (Temporary lodging such as a hotel doesn't count.)