I moved to California and short sold my house in Nevada, why do I owe on my California tax return due to selling my house in NV?

[DianeW · Accepted solution]

The gain on any sale, regardless of where the property is situated, is taxable on your resident return.  If Nevada would have a state tax then you would have had a credit on California but this is only to relieve you from paying tax twice on the same income.  All worldwide income is taxable to your resident state.