How do I report a sale of an out of state inherited property in Iowa

[jschuman]

I sold an inherited out of state property in Iowa and am having trouble how to correctly report on the Iowa tax return?  I recorded it in the Federal TurboTax as basically a long term capital gain asset and I think that is correct.   However, when I go to file a non-resident Iowa state return, Turbotax does not seem like it transfers cleanly to the Iowa return.  How do I report that sale in the Iowa return?  The only adjustment that Iowa's TurboTax allow me to do is adjust the Iowa capital gains to $6k (The Iowa property profit) and zero out my other non-Iowa income, but it does not list the property sale directly.  Do I just add a statement clarifying what I'm paying tax to Iowa on? 

[DavidD66 · Accepted solution]

You don't need a clarification statement.  If your gain on the sale was $6,000 and you were able to adjust your income on the Iowa return so that the only income on your Iowa return is a $6,000 gain, that's all you need to do.  Assuming you live in a state with an income tax, you also need to take a credit for the tax you pay to Iowa.  If you prepared your resident state return first, you may need to delete it and then add it back in order for the Credit of Tax Paid to Other States to calculate and show up on your resident state tax return.