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New Member
posted Jun 15, 2023 6:34:04 PM

Capital Gains Tax question

Hi, 

 

We reside in Florida, and own outright, two rental properties - one in Kansas and the other in Missouri. 

 

We have just sold one property and are about to sell the other. We do not intend to purchase other properties. Do we have to pay either Kansas or Missouri state capital gains tax, even though we live in Florida, where there is no state capital gains tax applicable?

 

Thanks

0 2 452
2 Replies
Level 15
Jun 15, 2023 6:41:09 PM

Yes, the source of the income is the state where the property is located. You must pay tax to each state on the income that is derived from selling property in that state. The fact that you live in a state that does not have state income tax does not relive you of having to pay tax to the states where the properties are located.

 

New Member
Jun 16, 2023 6:21:14 AM

Thanks for the swift reply.