New mexico land sale

[VA26]

I am a resident of Illinois but owned land in New Mexico which I sold in 2024 and received a 1099-S for that sale.  Do I have to file a New Mexico State Income Tax Return for just this land sale? if so where would I enter that in the state return?

 I will be entering the 1099-S in my federal taxes in form 8949 with a LT gain.  

Thank you

[MaryK4]

Yes, you would be required to file a New Mexico state tax return.  New Mexico uses the federal Adjusted Gross Income as the base, so you can go through the TurboTax state section to indicate that only the capital gain is taxable income for New Mexico.  

[VA26 · Accepted solution]

Thank you so much for your reply. 

I did now download the New Mexico return.  Seeing that I am a non-resident, would I even have to put down in that return any of my Federal gross income such wages , interest , dividends, gains and losses from the sale of Property, pensions, social security, etc. that their Form PIT-B Section 1 (Allocation of Nonbusiness Income) appears to be asking for in one column and in the similar second column for just New Mexico Income broken down.

1. Can I just fill in the New Mexico income column with the one land sale gain entry and be done with this, or does all my Federal income items have to be entered as well,  even if I'm non-resident?

2. Will TurboTax do all of the required entries which ever way is required?

3. I assume I should do my TurboTax federal return first, then do the New Mexico second, with Illinos as the last return?

I appreciate your help.

Thanks again

[MindyB · Accepted solution]

1. You are correct- you will not pay tax on wages, interest etc to New Mexico. However, TurboTax will carry over the federal amounts. You will just make sure the New Mexico amount is $0.

2. Yes, TurboTax will calculate this.

3. Yes this is the correct order. Illinois will be last so you get the final credit for taxes paid to other states.