Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
nello
Level 2

Illinois Resident with Wisconsin Real Estate Sale

My wife and I file jointly in Illinois as full-time, retired residents.

 

My wife inherited real estate in Wisconsin and sold it six months later.

 

Do we need to file a Wisconsin tax return to avoid a matching notice on the 1099-S from the Wisconsin closing?

 

Since this is a short-term capital gain—not W-2 income—how do I fill out the Illinois and Wisconsin returns?  Does the answer change if it is a capital loss and it is more than offset by other (Illinois) capital gains?

 

Thank you for reading this.

3 Replies
Mike9241
Level 15

Illinois Resident with Wisconsin Real Estate Sale

Do we need to file a Wisconsin tax return to avoid a matching notice on the 1099-S from the Wisconsin closing?

 

you file form 1 NPR (non-resident form ) because your gross income for Wi purposes will be over $2,000

 

Since this is a short-term capital gain—not W-2 income—how do I fill out the Illinois and Wisconsin returns?  Does the answer change if it is a capital loss and it is more than offset by other (Illinois) capital gains?

 

you prepare your federal return and then your non-resident Wi return reporting only the sale of the Wi real estate in the WUI column (not other capital gains you derived as an Illinois resident)

 

then you prepare your resident IL return taking credit on schedule CR for taxes paid to Wi

 

 

rjs
Level 15
Level 15

Illinois Resident with Wisconsin Real Estate Sale

A sale of inherited property is always treated as long-term, no matter how long the decedent or the heir actually owned it. When TurboTax asks for the date acquired, enter the word "Inherited" (without the quotes) instead of a date.

 

Mike9241
Level 15

Illinois Resident with Wisconsin Real Estate Sale

the fact that the gain is long-term makes no difference for state income taxes because the rate for short-term and long-term gains are the same.

Dynamic AdsDynamic Ads
Privacy Settings
v