You'll need to sign in or create an account to connect with an expert.
In Wisconsin, taxpayers are allowed a deduction of 30%, on long-term capital gains, or 60% if the capital gain resulted from the sale of farm assets. Unfortunately, that won't do you much good, as California taxes capital gains as ordinary income.
Your capital gain will be the $110,000 net proceeds less your cost basis. Cost basis is usually what you and/or your ex originally paid for it. Inherited or gifted property might have a different cost basis. When entering the sale, in TurboTax, show the full sale amount (what's on the 1099-S, probably $120,000) as sale amount and show the $10,000 difference as expenses of sale.
Yes there are and yes you do pay taxes on the gain ... you will get a 1099-S form at the closing to report the sale on the Sch D ... failure to do so will insure an ugly IRS letter in a couple of years.
https://ttlc.intuit.com/questions/2583688-sale-of-a-second-home-or-land
You are taxed by your resident state on all your income, but you should be able to take a credit on your resident state for taxes paid to other states on all income that was taxed by the nonresident state, so you are not doubled taxed.
To elaborate on @tbrown21 's answer:
A capital gain on the sale of property located in Wisconsin is taxable by Wisconsin. It is also taxable by your resident state of California, but you'll be able to claim a credit on your CA return for the taxes paid to WI.
In Wisconsin, taxpayers are allowed a deduction of 30%, on long-term capital gains, or 60% if the capital gain resulted from the sale of farm assets. Unfortunately, that won't do you much good, as California taxes capital gains as ordinary income.
Your capital gain will be the $110,000 net proceeds less your cost basis. Cost basis is usually what you and/or your ex originally paid for it. Inherited or gifted property might have a different cost basis. When entering the sale, in TurboTax, show the full sale amount (what's on the 1099-S, probably $120,000) as sale amount and show the $10,000 difference as expenses of sale.
Thank you, I appreciate the details in your answer. This helps alot.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
billiecrawford-m
New Member
StevenFff24
Returning Member
tarheelrick
New Member
mc135
New Member
mortezadm
Level 3
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.