Selling a rental property out of state and taxes withheld

[Sweetlb]

I sold a rental house in another state and paid taxes to that state at the time of the sale.

When filing taxes for my home state of MA, can I deduct this?

I see the section “Income Taxed by Rhode Island”.

Do I enter the net profit of the RI house as “Total Long term capital gain income” and the taxes withheld at the sale as “RI Tax paid on this income”?

[ColeenD3]

In the program, you should have encountered these screens. They specifically apply to your situation. In addition, you will see Nonresident Withholding on Real Estate Sales.

[Sweetlb]

I do not see these screens. I am only filing a state return with my home state, MA. Do I need to fill out a return for RI too?

[Cynthiad66]

Yes you will need to file a Non-Resident Rhode Island return since you had withholding in that state.

@Sweetlb 

[mess3462]

If this form is completed showing the gain related to RI; should the gain be excluded from Massachusetts income tax? Or will a credit be calculated based on taxes paid to other states?

[DaveF1006]

Yes, if you prepare your RI non-resident return first and prepare it correctly, a credit will appear on your Massachusetts return based on the tax you paid to RI.

@mess3462