I sold my primary home in MI in 2020 after I had moved to CA. The sale was exempt from capital gains. In filing, turbotax shows the house as being in CA. How do i fix?

[gatlboy]

Do I need to file a MI return as well due to the sale of the home, even though I didn't live there in 2020 and had no wages there?

[ErnieS0]

You do not need to fix the sale of the home on your California return. You sold the home while a California resident, so it should be on the California return, even if there is no capital gains.

You probably have to file a MI return. MI requires you to file a return if your federal AGI exceeds the state exemption allowance, which is $4,750 prorated by the number of months lived in MI.

MI also says you should file a return if you file a federal return to eliminate unnecessary correspondence from the Department of Treasury.

[gatlboy]

In regard to filing a MI return, I didn't live or have any income in MI during 2020 with the exception of the sale of the home which closed in January.  My confusion in regard to filing my CA return is that turbo tax keeps prompting questions about the property that was sold (as if it were located in CA) that I'm unable to answer and/or not applicable.  Even though there are no capital gains on the home, and to my understanding, should not count as taxable income, in completing my CA state return - it appears it's counting the sale as income and therefore adding a tax liability.

[ErnieS0]

California follows federal rules for home sales so the sale will be exempt for state tax.

You may be seeing the total gain on Here’s the income that California handles differently. Click Edit. Then Edit again on Sales of Personal Residences Summary.

TurboTax should say: “You don’t need to enter any additional cost or basis information for this home sale.” Click Continue.

TurboTax should say: “The amount of gain excluded from tax on this home sale is $xx,xxx. You have a taxable gain from this sale of zero.”