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posted Jun 1, 2019 2:15:17 PM

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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Level 9
Jun 1, 2019 2:15:19 PM

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.

1 Replies
Level 9
Jun 1, 2019 2:15:19 PM

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.