I sold a house in Georgia last year, however we are military and our home of record is Texas. Do I need to file a georgia tax return to report the sale?

[DavidD66]

You won't owe any tax on the first $250,000 (also known as a gain) you make from the sale of your home (or the first $500,000 if you're Married Filing Jointly).  That income is free and clear as long as:

• You owned the home
• It was your main home for two years or more within the five years leading up to the sale
• You waited at least two years between selling your primary home and excluding your first $250,000 or $500,000 from taxes.

If you qualify based on the criteria above, you would not need to report any gain on a Georgia tax return.  If you don't qualify:

Your Home of Record (HOR) is defined as the state where you first enlisted or from where you received a commission from one of the branches of armed services. HOR determines certain benefits, such as travel allowance back to your state when you leave the military.  State of Legal Residence (SLR) is considered your permanent home, the state where you intend to live after you leave the military. This state is considered your residency for state income tax purposes, among other things. Your legal residence should be the same place as your legal residence indicated on your Leave and Earnings Statement. 

If the house in Georgia was your residence, and your SLR is Texas (or any other state), you do not need to file a Georgia tax return to report any gain.  If it was a rental or investment property then it is not covered by the Servicemembers Civil Relief Act SCRA, and you will have to file a Georgia Non-Resident tax return.

[pk]

@patrice3306  as a member of the armed forces , your  income  is taxed  by the home of record state . Thus in your case it is Texas ( No income tax ). However, for  passive / investment incomes  you would be treated as a non-resident by the state of Georgia -- this you have to file a Non-Resident return for the real-estate gain on property sold in Georgia.

Does this make sense ?

pk

[patrice3306]

Thank you! This is exactly what I needed!

[awillis2]

If you qualify for the exemption there is a limited opportunity to extend the original 60 month period by up to 10 years if you are on "qualified official extended duty."

You are on qualified official extended duty if you serve on extended duty either:
• At a duty station at least 50 miles from your main
home, or
• While you live in government quarters under government orders.
You are on extended duty when you are called or ordered to active duty for a period of more than 90 days or
for an indefinite period.

See: 

Publication 3 Cat. No. 46072M Armed Forces' Tax Guide