topic Do I need to file state tax return for state in which I did not reside, but in which sold an inherited home for a loss? in Deductions & credits

Do I need to file state tax return for state in which I did not reside, but in which sold an inherited home for a loss?

rjgabor — Sat, 01 Jun 2019 06:47:29 GMT

I'm a resident of NC and inherited a home in Ohio, which I sold for a loss about a year later. I did not use this home for personal use or rent it out, so my understanding is that I can consider this house as investment property and treat the loss as a long-term capital loss.

Of course, I will be filing a NC tax return, since that's the state in which I reside and have a job. But my question is whether I also have to file an Ohio return if the only activity I had there was to sell this home, and the sale resulted in a loss.

Also, do I need to make any adjustments to my NC return to somehow not realize this loss, since the sale was actually in Ohio?

An article that caused me some confusion was: http://hanleylaw.com/income-tax-law-inherited-property

Here, the example sounds a lot like mine, and he is saying "if, however, they inherited property from a state that taxes income, they would have to file a non-resident tax return.", which didn't make sense to me since they sold house at a loss.

According to the Ohio Department of Taxation, non-residen...

PatriciaV — Sat, 01 Jun 2019 06:47:30 GMT

According to the Ohio Department of Taxation, non-residents are required to file a tax return if they have "income or gain from Ohio property." If you had only a loss on the sale of the property, then you are not required to file an Ohio State tax return.

When you go through the North Carolina State interview, TurboTax will ask about the loss on the sale if it is relevant to your state tax return.

See the instructions below on how to enter the sale of an inherited home:

https://ttlc.intuit.com/replies/4241480

This response differs from "Inherited Home Multiple Quest...

finallyfenix — Sat, 01 Jun 2019 06:47:32 GMT

This response differs from "Inherited Home Multiple Questions". Several places it said inherited homes are not Second Homes but are investments.