WV Inherited Real Estate sale for non-resident

[Scootles]

I inherited a house in WV at the end of 2022 and was appraised at the time.

The house was sold at the end of 2023, after real estate prices dropped significantly and ended up being a loss of around $20,000 from the stepped up basis.

I am a non-resident so at the time of sale I was taxed 2.5% in addition to all other closing costs.

Do I need to file a WV State Tax Return given that I have already paid the non-resident real estate tax and the sale of the home did not result in a capital gain?

[DianeW777]

Yes, you must file the nonresident West Virginia (WV) tax return.  They will know the sales price and not the cost basis of the property sold until the return is filed.  The loss will not generate tax, but is still required to be filed.

You must file a West Virginia income tax return if: (WV Instructions)

• You were a resident of West Virginia for the entire taxable year 

• You were a resident of West Virginia for a part of the taxable year (Part-Year Resident) 

• You were not a resident of West Virginia at any time during 2023, but your federal adjusted gross income includes income from West Virginia sources (nonresident)