Do I have to pay State tax in both States (resident and non-resident) for sale of property in a State where I do not reside?

[tyager1635]

I am an Ohio resident.  I was gifted part ownership of residential property in Indiana. The property was sold and I received the proceeds.  I think I've figured out how to handle this for Federal purposes, but do I have to pay any State tax in Indiana as well as Ohio?  

[MargaretL · Accepted solution]

No, you won't have to pay tax in both states. You will file both, Resident and Non-resident state.  If you have to pay tax to IN, when filing OH state, you will receive a credit for taxes paid to another state.  Be sure to file your Nonresident state first, then your Resident state.