AZ resident selling OR property - avoid double taxation

[user17731680699]

I'm an AZ resident and sold a property in OR last year. I paid OR and federal tax on the capital gain.

I want to make sure I don't get double taxed on the gain in both OR and AZ.

Turbotax for AZ state does not support getting a credit for tax paid in Oregon.

Do I simply subtract the OR capital gain as an AZ adjustment to income?

[user17731680699]

Well, after some digging, here is the rest of the story.

Arizona has Form 309 to claim credit for taxes paid in other states. HOWEVER, you cannot use it for Oregon and a handful of other states (14 total).

So, Arizona will tax your capital gain in Oregon or these other states. BUT you can claim the AZ taxes on your non-resident return in OR.

That is why Turbotax would not allow me to take a credit for OR taxes paid. It actually added the AZ credit to my OR return. All good.

By the way, none of the AI helpers were useful. I had to read the instruction to Form 309 myself.

[MaryK4]

Arizona and Oregon are reverse credit states- this means that instead of paying the tax to your nonresident state and get the credit on your resident state return, you will pay the capital gain tax to Arizona (your resident state).  You will then prepare and file your Oregon state tax return and take the credit for the taxes you paid to Arizona.