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barbdaus
New Member

Sale of 2nd home...I sold my 2nd property in a state other than where I live and work. I want to know how to remove that investment from my residence state

I am filing a tax return for the 2nd state - but don't want to pay tax in both states for the sale of this property

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Zbucklyo
Level 9

Sale of 2nd home...I sold my 2nd property in a state other than where I live and work. I want to know how to remove that investment from my residence state

You don't remove the sale of the property from your resident state tax return.  First, you report the sale federally and in your non-resident state.  Pay taxes, if any, on the sale to the non-resident state.  Your resident state will tax you on all your income, but give you a credit for taxes paid to the other state.  You are not double-taxed.

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Zbucklyo
Level 9

Sale of 2nd home...I sold my 2nd property in a state other than where I live and work. I want to know how to remove that investment from my residence state

You don't remove the sale of the property from your resident state tax return.  First, you report the sale federally and in your non-resident state.  Pay taxes, if any, on the sale to the non-resident state.  Your resident state will tax you on all your income, but give you a credit for taxes paid to the other state.  You are not double-taxed.

View solution in original post

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