SALE OF NY PRIOR HOME AS NON RESIDENT

[andyjoann]

BECAME  A FL RESIDENT IN 01/2024 AND SOLD HOUSE IN 02/2024. DO I OWE NY TAXES 

[SabrinaD2]

It depends. New York generally does not tax the sale of your primary residence if you qualify for the federal capital gains exclusion. This exclusion allows you to exclude up to $250,000 of gain ($500,000 for married couples filing jointly) provided you meet the following criteria

• Ownership Test: You owned the home for at least two years. Use Test: You lived in the home as your primary residence for at least two out of the last five years before the sale. Exclusion Use: You have not used the exclusion on another home sale within the past two years.
• When Taxes Apply: If your gain exceeds the exclusion amount, the excess may be subject to New York income tax
  • If the property was not your main home or you did not meet the rules, the gain may be fully taxable. Then you may owe New York taxes on the sale of your New York home, even if you live in Florida
  •  Nonresidents are subject to New York taxes on income from New York sources, such as real estate sales
  • To fulfill this obligation, you must file Form IT-2663 to estimate and pay any taxes due at the time of the sale
  •  Additionally, you’ll need to report the sale on Form IT-203, the Nonresident Income Tax Return, to reconcile taxes paid

TurboTax Can Help you determine if you owe NY taxes and claim any credit for taxes paid in another state. Here are the steps:

Steps to Report the Residency in TurboTax:

1. Sign into TurboTax
2. Go to the Personal profile screen, scroll down to Other State Income, and select Edit.
3. Complete the questions to set your residency status as Florida for 2024.
4. On the Did you make money in any other states? question, answer Yes and make sure your nonresident state(s) are selected from the drop-down.
5. Select Continue to return to the Personal profile screen
6. Set your residency status as Florida for 2024.

Steps to Report the Home Sale in TurboTax:

1. Gather your Mortgage and sale tax documents (1099-S, Sales documents, 1098s, etc,,)
2. Open TurboTax and start your tax return.
3. Click on the search magnifying glass icon in the top-right corner of the screen.
4. Type "home sale" into the search bar.
5. Select the "Jump to home sale" link that appears in the search results.
6. Follow the prompts to enter details about the sale:
   1. Date of purchase and sale.
   2. Purchase price and selling price.
   3. Major improvements made to the property.
7. TurboTax will guide you through reporting the sale and calculating any taxable gain or loss.

Supporting Resources:

Access Form IT-2663 and instructions for nonresident real property sales.

Learn about filing requirements for nonresidents on the New York State Department of Taxation and Finance website.

TurboTax also provides a guide on home sales.

[Caryh123]

If I lived in a New York Coop for 10 years moving out 1/31/2024 and moved to a new permanent residence in florida, and a buyer is finally closing on my coop this month and my gain is $175,000 do I owe non residence sales tax from form IT-2664

[LenaH]

No, you are exempt from filing Form IT-2664. 

Per the form instructions, a nonresident is not required to file Form IT-2664 if the coop sold was the principal residence of the seller as explained by Section 121 of the IRC. Section 121 allows you to exclude gain from the sale of your primary residence if you owned and lived in the home as your main residence for at least two of the five years before the sale. The exclusion is $250,000 if filing single and $500,000 if married filing jointly. 

Since you stated you owed this coop for ten years and the gain was under the maximum exclusion limit, you would qualify to claim Section 121. 

@Caryh123