Capital Gains Taxes To Utah As A Non-Resident?

[Cyberonix]

I live full-time in a state that does not have state income tax. I am however in a partnership which is based in the state of Utah. As such I have to file Utah state taxes each year as a non-resident and allocate income from that partnership. Separately I own shares of stock from a corporation that's also based in Utah (but has never paid dividends). This year that company had a complete liquidation. I received a 1099-DIV from them with only Box 9 (Cash liquidation distributions) containing an amount. They did however fill in Boxes 14 (State) and 15 (State identification no) but not 16 (State tax withheld). I added this 1099-DIV information under the appropriate Interest and Dividends section of Wages & Income. TurboTax then directed me to go to the Investment Income section of Wages & Income where I filled in a "sale not reported on Form 1099-B" entry in the Stocks, Mutual Funds, Bonds, Other section.

Due to these entries I now have a section related to capital gains when walking through the Utah state portion of my taxes. It asks me to "Enter the Utah portion of the following federal income items." and then shows my capital gains amount. My question is are these capital gains subject to state tax even though I'm a non-resident of the state where the corporation liquidated?

[AmyC · Accepted solution]

Yes, Utah income must be reported on the return. You will pay any tax due. Normally, your resident state will give you a credit for the lower of the 2 states taxes on the taxable amount of the income. Since you have no state tax, you only have to file Utah and pay them.

Utah instructions along with  rules for nonresident.