Oregon state tax on property sales

[dmlawr74]

Where do I make entries in Turbo Tax State Return for sale of a second home in Oregon for a non-resident tax return?

[MayaD]

You have to report the sale on your federal return and your information will carry over to the state return.

You need to file Oregon non- resident return and, you will be taxed on the capital gain.

Please check the link below for information on how to report the sale of your second home.

Where do I enter the sale of a second home, an inherited home, or land on my 2020 taxes?

[dmlawr74]

Thanks for the response.  I included the sale in the federal return portion, completed a form 8949, and listed the State tax withheld at sale of the property for the Oregon tax, but don't see that the amount withheld for the OR capital gains tax was listed in the State return I'm completing.  TurboTax is showing I have a return coming from the State that is about half of the amount of capital gains tax withheld at sale.  That doesn't seem accurate.  Am I wrong?

[MaryK4]

Yes, you are not correct because Oregon does not have a special capital gain tax rate like the federal. Capital gains are treated the same as other taxable income in Oregon and subject to the regular Oregon tax rates ranging from 5% to 11%.  Oregon based your refund on the amount you owed on the gain.

For nonresidents sellers, Oregon requires escrow agents and attorneys acting as authorized agents may be required to withhold and remit tax payments to the Oregon Department of Revenue as an estimated payment for any taxes that may be due. Taxpayers will claim these tax payments as estimated tax payments on their Oregon tax returns filed for the year in which the sale was made. 

See 2020 Form OR-18-WC in the instructions of how the agent determined the estimated tax payment.

@dmlawr74