Live in AZ, sold land in IA

justwondering1 · ‎March 7, 2022

I live in Arizona and have just sold my family farm in Iowa. The capital gains are already entered into my Federal 1040 and my Iowa 1040IA. Now I'm working on my Arizona return, and I can't find where to reduce my Arizona capital gains by the same amount. Any help would be appreciated. Thanks.

AmyC · ‎March 7, 2022

As an AZ resident, they tax all income and will give you a credit related to the Iowa tax. The credit will be the lower of the state tax liabilities on the same IA income

You prepared the IA return first to create the tax liability. The program will include the IA state liability to be a part of your AZ return on form 309, which shows the allowed AZ credit and the computation. This carries to Form 301, part 1, line 3.

Which carries with the other credits to your main form, line 51.

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View solution in original post

AmyC · ‎March 7, 2022

As an AZ resident, they tax all income and will give you a credit related to the Iowa tax. The credit will be the lower of the state tax liabilities on the same IA income

You prepared the IA return first to create the tax liability. The program will include the IA state liability to be a part of your AZ return on form 309, which shows the allowed AZ credit and the computation. This carries to Form 301, part 1, line 3.

Which carries with the other credits to your main form, line 51.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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Live in AZ, sold land in IA