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Dividing capital gains between states

I live in Colorado and sold a rental property in Maryland. I think the Maryland state taxes are done correctly, but Colorado I'm not sure of. The Maryland income only shows the capital gains. The total income showing for Colorado includes the capital gains in Maryland. And yet I'm getting a decent refund from Colorado. How do I indicate on the federal form that those should only apply to Maryland? Or is this something I have to do on the Colorado form? I don't see it anywhere. Or did Colorado exclude it somewhere that I don't see on the step-by-step?

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1 Reply
MaryK4
Employee Tax Expert

Dividing capital gains between states

As a Colorado resident, you must pay tax on all income regardless of source,  However, qualifying Colorado taxpayers can deduct certain qualified capital gain income if it is included in their federal taxable income- up to $100,000 for real property.

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