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posted Apr 13, 2022 10:30:56 AM

Property sold in another state

I live and file my taxes in Michigan.  Last year we sold a vacant lot in Florida and have capital gains on it.  Are the capital gains taxed on my Michigan return or do I have to file one in Florida?

 

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1 Replies
Expert Alumni
Apr 13, 2022 10:56:17 AM

No, you do not have to file one in Florida. Florida does not have an income tax, so you are not required to file there even though the property is in Florida.

 

As your resident state, Michigan has the right to tax all your income, even income earned in another state. The capital gains from this sale are taxable in Michigan.