I am a resident in California. I sold a long term hold on land in Texas we were going to build a house on. Do I owe California state capitals gains tax?

[westairmed]

Since Texas has no state tax does this mean it is not taxable or only if you resided in Texas do you take that benefit?

[MichaelL1 · Accepted solution]

Your resident state will tax you all your gains regardless of where incurred, so Yes the Texas land sold is taxable by CA.

If you would have paid taxes in another state (which you do not as TX has no state income tax) you would have gotten a credit for taxes paid in that state, which is none in this case.

For your purposes it is just a Investment Sale taxable by both IRS and CA.

To enter your Investments sold
Click on Federal Taxes
Click on Wages and Income
Click on I'll choose what I work on
Scroll down to Investments
On Stocks, Bonds, Other, click the start or update button

[westairmed]

Thank you for your help.

[MichaelL1]

My pleasure