received capital gains on sale of Florida condo do I owe capital gains in my state of residency, Michigan?

[satelliteragtop]

Using the CD windows 2020 TT version. We sold our Florida vacation condo in 2020 and made say 75K profit. Turbotax has us paying a bunch of capital gains on it as I expected but when I start my Michigan taxes it has taken note of it and is saying I may have to pay a penalty because of it? 1) if the condo is not in Michigan do I have to pay taxes on the sale in Michigan? 2) why should I be penalized for profit of an unforeseen  transaction?

Any help would be really appreciated. 

Ed

[DavidD66 · Accepted solution]

If you are a resident of Michigan, all of your income is taxable by Michigan, regardless of where it was sourced.  If the condo had been in a state with an income tax, Michigan would give you a credit for the tax paid to another state, but since Florida has no income tax, there will be no such credit.  

As for the penalty, it would be for an underpayment of estimated tax.  It should only be calculated from the due date of estimated tax payments for the quarter in which the sale occurred.  It is not something you should have paid in advance, it is something you should have paid shortly after the sale.