topic Capital Gains Exclusion on North Dakota state form (No sale of house!) in Deductions & credits

Capital Gains Exclusion on North Dakota state form (No sale of house!)

Snowdrop — Sat, 01 Jun 2019 18:24:33 GMT

The ND state interview form has a screen headed "Capital Gains Exclusion." Underneath it asks, "If you received capital gains or losses that are reportable to North Dakota, enter the amounts below."

Do I enter the amount of capital gains from North Dakota source income here? Even though I didn't sell a house and I am not expecting a capital gains exclusion? Or is this box only for capital gains that are _subject to exclusion._

(Thank you! The capital gains are shown on a K-1; I am the beneficiary of an estate.)

Yes, you are correct. Only enter the amount of capital ga...

Cindy0H — Sat, 01 Jun 2019 18:24:34 GMT

Yes, you are correct. Only enter the amount of capital gains from North Dakota source income. Capital gains are included as taxable income in North Dakota; however long-term gains may be eligible for the North Dakota net long-term gain exclusion. The exclusion is equal to 40% of your net long-term gains.

From North Dakota's instructions:

If your federal taxable income includes a net long-term capital gain (including a capital gain distribution from a mutual fund), you may be able to exclude 40 percent of the gain from your North Dakota taxable income. If you were a full-year nonresident or a part-year resident of North Dakota for the year, only a net long-term capital gain reportable to North Dakota is eligible for the exclusion.

North Dakota Instructions on page 12:

https://www.nd.gov/tax/data/upfiles/media/2018-individual-income-tax-booklet_1.pdf?20190405164300

If you have other questions about this, ask in the comment section below.

Re: Yes, you are correct. Only enter the amount of capital ga...

DaroldMWolff — Thu, 19 Mar 2020 21:52:09 GMT

I live in Iowa but sold some property in ND a few years ago. There were capital gain on the sale (property held for more than 10 years before sale). Do I declare the gains on my Iowa state form or on the ND form? Or is it my choice? I file a ND form each year because I receive some interest payments each year. Or can both the gains and interest be declared on my Iowa form?

Re: Yes, you are correct. Only enter the amount of capital ga...

MaryK4 — Sat, 21 Mar 2020 02:41:31 GMT

Because the property was located in North Dakota, you must file a nonresident return to report the income. You also have to report it on your resident state Iowa return, but you will get a credit for the tax paid to North Dakota so you will not be double taxed.

@DaroldMWolff