Capital Gains from Property Sold Out of State

[DawnC]

On your Hawaii resident return, look for Schedule CR - Part ll Line 11.   @karenkailua   This credit may be claimed by N-11, N-15, N-40, and N-70NP filers.   Step back through the HI return if you don't see the credit applied.  

Note: If you claim a credit for income taxes paid to other states and countries, you cannot also claim those amounts as an itemized deduction for state and foreign income taxes paid to another state or foreign country. 

Note: This credit may not be claimed by nonresidents, unless they are married and filing a joint resident or joint part-year resident return.

[karenkailua]

Thank you! I found the credit and confirmed the math (that I paid tax to VA and HI taxed me for the difference at their rate). Unpleasant discovery, but happy to know my return is correct. 

Aloha~ 

[cayupe1]

I also sold a property in HI in 2024 and have capital gains for Fed but had to pay Hawaii the tax.  Since CA will recognize my tax payment to HI how do I remove that from my state filing since my fed is showing the gain and CA is also now showing I owe.  
THanks

[MonikaK1]

Are you a California resident? If so, prepare a Hawaii nonresident return first. Note the amount of the tax (not the refund or amount due with the return) on the Hawaii return.

Then, prepare your California resident return. You may qualify for a credit for taxes paid to Hawaii. The California interview in TurboTax provides entries for this.

See the Instructions for California Schedule S for more information.

Please also see this TurboTax tips article for more information on filing returns with multiple states.
 

@cayupe1