How to file State taxes when you move and sell your house in different year?

Forum|Forum|3 years ago
December 11, 2022
2 replies
17 views

We lived in NY for 35+ years, then we moved to CA in Dec., 2021. We sold our house in NYC on 1/5/2022.

Do we still need to file NYC and NYS tax return?

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Anonymous_

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@Mike9241

TomD8

Alumni - Champ

If you began living in CA in 2021 with the intent of making it your permanent, main home, then for tax purposes you became non-residents of NY in 2021. Since NYC taxes residents only, you would not have to file a NYC tax return for 2022.

However, since your NY home sold in 2022, any taxable capital gain (after any applicable exclusions) from that sale would be taxable by NYS (as well as by your 2022 resident state of CA), and you would have to report that gain on a non-resident NYS return as well as on your 2022 CA resident return. In that situation you would be able to claim a credit on your CA return for the tax paid to NY on the income taxed by both states, so you wouldn't be double-taxed.

A capital gain from the sale of property located in NY is taxable by NY, and it is taxable in the year that the sale closes.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.