If one lives in NY but sold a piece of inherited farmland in Kansas, does one pay capital gains taxes in both NY and Kansas? Or does one only pay Federal & Kansas taxes?

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You will have to pay capital gains tax in both New York and Kansas. However, you may qualify for a credit in New York for the tax paid to Kansas. When you go through the New York return, make sure you click Start next to the Taxes Paid to Another State section to calculate the credit.