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SloopR
New Member

If you inherit a home in another state than the one you reside in and sell the house for a capital gain do you have to report that gain to the state where the home exists

If you inherit a home in another state than the one you reside in and sell the house for a capital gain, do you have to report that gain to the state where the home exists?


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DS30
New Member

If you inherit a home in another state than the one you reside in and sell the house for a capital gain do you have to report that gain to the state where the home exists

Yes, you will need to report the inherited home sale and the related capital gains in the state were the property was located on a nonresident state return in that other state (if that state has a state income tax reporting requirement related to the sale of a capital real property asset.

If your home state also has a income tax reporting requirement, you will need to include this sale on your resident state income tax return. But will be able to take a state income tax credit in your state of residence for income (in this case a capital gain) that is also being taxed in another state.

Click IRS answers on Gifts and Inheritance for more information from the IRS on the sale of an inherited property.

Here is additional information about filing in multiple states (select "see more answer" to view the entire attachment)

 

https://ttlc.intuit.com/replies/3300797


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1 Reply
DS30
New Member

If you inherit a home in another state than the one you reside in and sell the house for a capital gain do you have to report that gain to the state where the home exists

Yes, you will need to report the inherited home sale and the related capital gains in the state were the property was located on a nonresident state return in that other state (if that state has a state income tax reporting requirement related to the sale of a capital real property asset.

If your home state also has a income tax reporting requirement, you will need to include this sale on your resident state income tax return. But will be able to take a state income tax credit in your state of residence for income (in this case a capital gain) that is also being taxed in another state.

Click IRS answers on Gifts and Inheritance for more information from the IRS on the sale of an inherited property.

Here is additional information about filing in multiple states (select "see more answer" to view the entire attachment)

 

https://ttlc.intuit.com/replies/3300797


View solution in original post

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