MI tax on sold second home in AZ

[mzbojn]

Turbo Tax list the capital gains from the sale of my second home in AZ . Do I exclude this from MI and put it on the AZ form?

[AmyC]

No. If you are a MI resident, you pay taxes on all income and will receive a credit for the double taxed AZ income. Complete your AZ nonresident return before preparing your resident state for the tax liability to come over correctly.

You get credit for the lower state tax on the lowest taxable amount.

• Each state calculates taxable income differently. 
• Each state has its own tax rate/ system.
• You get the lowest of both categories as a tax credit.

[Hal_Al]

Q. Do I exclude the sale of a  second home  AZ, from MI and put it on the AZ form?

A. No. You include it on both the AZ and MI tax returns.  MI will give you a credit, or partial credit for any tax you pay to AZ.

This assumes MI is your resident state.