I have an investment property in Florida, and as I am moving to Maryland, I am selling it. Do I own Maryland state tax / capital gain tax or any other related tax for selling this property? Does it matter whether the closing happen before or after establishing a Maryland residency? I am moving to Maryland in July, so I understand that I have to pay state tax for the whole year. Thank you!
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Maryland begins its calculations with federal AGI. The capital gain on this property will be included in your AGI. However, part-year residents include a subtraction for income received while a nonresident. So the timing of your closing and when you establish residency are important.
Your residency in MD is "established" on the day you begin living in your new permanent home (your new domicile, in tax terminology) in MD. (Temporary lodging such as a hotel doesn't count.)
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