I SOLD A PROPERTY INMICHIGAN IN 2023

[satbirkdeol]

I LIVE IN NJ . SOLD PROPERTY WITH PROFIT OF 73000

[tagteam]

You have Michigan income and need to file a Michigan state return.

[TomD8]

A capital gain from the sale of property located in Michigan is taxable by the state of Michigan.  It is also taxable by your resident state of NJ, since your resident state can tax all your income.  

Therefore at tax time you must file a non-resident MI return in addition to your home state NJ return.  You will be able to claim a credit on your NJ return for the tax you pay to MI on the capital gain.  The credit prevents double taxation, which is prohibited by federal law.  With TurboTax, prepare the non-resident state return first, then the home state return.  The program will then calculate and apply the credit.