Still having trouble with MARYLAND TurboTax (Capital Gain on rental house sold in Virginia)

[wms52]

I owe $17,000 to VIRGINIA on the sale our my rental home (roughly $350,000 profit). That is acceptable. Problem is that MARYLAND picks up the Capital Gain from my Federal worksheet and first charges $24,000 Maryland tax, adds $7,200 because they have a 2% Excess Gain tax for anything that exceeds 350,000 (all 350,000), then add a local tax ($13,000) on top of the Maryland tax of $14,000. There are no other Capital Gains except a STOCK LOSS of $26,000. So almost all of my taxable income is the sale of the VIRGINIA house. Why does TurboTax calculate $27,000 tax owed to MARYLAND when most of my income came from VIRGINIA? Is there something, maybe on the 502CR Maryland worksheet, that I am missing? Yes, TURBOTAX does pick up and gives me credit for the $17,000 payable to VIRGINIA. But It still says that I owe about $27,000 to MARYLAND. Help, please!

[MaryK4]

This seems correct.  The credit of $17,000 is applied to the amount you owe to Maryland- so $24,000 + $7,200 + $13,000= $44,200 minus the Virginia tax paid ($17,000) does leave you with a $27,200 balance.  

Maryland’s state rate and local rates (up to 3.20%) often exceed Virginia’s 5.75% rate. You must pay Maryland the difference between its higher rate and Virginia’s lower rate.

[wms52]

Am I paying DOUBLE for my state income taxes?  After selling the Virginia rental house, our FEDERAL TAX SUMMARY shows "Taxable Income" of $437,534.  Our MARYLAND TAX SUMMARY (where we live 100%) shows "Taxable Income" of $437, 552..... and our VIRGINIA TAX SUMMARY shows "Taxable Income" of $290,731. Shouldn't the total of Maryland and Virginia be equal to the Federal taxable income? It looks to me like Maryland should not count the profit from selling the Virginia house (437,552 MINUS 290,731) because that is paying double. Yes, we did enter Maryland Form 502CR to show credit for the Virginia tax. 

[NCperson]

@MaryK4 no, it's correct.

Maryland taxes everything based on Maryland tax laws and then gives you a credit for the tax paid to Virginia. 

the tax credit is the LESSER of a) what you paid to Virginia or b) what the tax would have been had the rental property been in MD to begin with. 

So if the MD taxes are higher than what the VA tax is, you pay the difference to MD. 

If the MD tax is lower than the VA tax is, you only get a credit for what you would have paid to MD had the rental home been in VA.  I suspect this is occuring.