If I sold a 2nd home in another state, do I need to file income taxes for that state, and what Settlement Costs are deductible?

[JohnH2]

Yes, if you sold property in another state, you should report the transaction to that state.  A state can typically tax a non-resident on income that is sourced to that state. 

With respect to your closing costs, your sales commissions, expenses of sale, pro-rated real estate taxes, pro-rated mortgage interest, and private mortgage insurance are good deductions.

[Claire17]

My husband was on the deed of his father's property. The property was sold in AL this year after death, we live in GA. I added the sale as sale of second home in description, put in state of AL as state. I was hoping that would add a state for me to fill out, it did not. Do I request add a state when I have completed Federal And GA state taxes? Will it carry over pertinent info before i payout $49 for another state?

[RobertB4444]

Before you file here are a couple of steps -

1. Delete the Georgia return.  I don't think you're going to owe any taxes to Alabama but in case you do Georgia will give you a tax credit for them.  So you want to do the Alabama return first.

2. Go back to your personal info section and where it says "did you earn money in another state?" you will say yes and put Alabama.

3.  Now the software will generate an Alabama non-resident return as well as a Georgia resident return.

4.  Remember these extremely important things about the sale of inherited property-

If the property was sold within six months of his father's death there is no gain - enter the sales price as the basis.

If the property was sold more than six months after his father's death the gain - if there is any - is likely to be minimal.  Put the value of the property at his father's date of death as the basis (Or the value from six months after his death, whichever is higher).

[cladypage]

I live in Wisconsin and sold a home in Michigan, which I never lived in.  I rec'd a Form 2022 (substitute form for 1099-S.

Do I claim this on my Wisconsin taxes or do I have to file separatel for Michigan

[MarilynG1]

When you report the Sale of Rental Property in your Federal return, you may have a Capital Gain/Loss, which will be included in your Adjusted Gross Income amount.

In the Michigan interview, you may need to indicate the amount of Capital Gain/Loss that relates to the Michigan property sale as an 'Adjustment' from the amount that carries over from your Federal return. 

Here's more info from Michigan Dept. of Revenue.

@cladypage