Propert sales out of state

[rebjbrown]

Sold property in the state of Vermont. Live in California. Realizing must pay capital gaines for the federal taxes, how does it work with the state taxes?

[ErnieS0]

You’ll have to pay Vermont tax because the property was in Vermont.

Vermont income includes “gains from the sale or exchange of Vermont property, including the sale of timber or timber rights.”

Nonresident

File a nonresident Vermont tax return and a resident California return.

The capital gain will be taxed by both states so you can claim a credit on your CA return for tax paid to VT.

If you prepare the nonresident VT return first, TurboTax will move the numbers to your CA return.

[rebjbrown]

Which version of Turbotax will allow me to do this properly? I currently an working off the cd version of Deluxe. Also of note, I have a form issued by the Vermont real estate guy that shows we paid 2.5% at the time of the sale, and the buyers also paid at time of sale. How does this in any way ?

Thanks again. 

[AmyC]

Any version of Turbo Tax can do a nonresident VT, calculate the liability and bring it over to your resident state for a credit. When you sell a home, some of the selling expenses are added to the cost basis. See page 16 of IRS Publication 523.

cost basis = how much you paid plus capital improvements not already deducted plus selling expenses minus depreciation

[rebjbrown]

Question about filling the 1099-S info in the turbo tax form:

A. “Sale proceeds” - this does not include commissions and attorney fees, correct? The 1099-S does not reflect those fees. (Entering under investments, mostly the turbotax form only discusses broker type of sales, not property)

B. In the case of a land transaction previously described - the form asks for a state ID number when I state that state tax was withheld. Is that appropriate for a land sale? Where would I find that info about a state ID number for a land sale?

Thanks very much!

[RobertB4444]

@rebjbrown  Enter the amount from the 1099-S as the sales proceeds.  You can adjust it for other expenses afterwards.  The federal ID on the 1099-S (The TIN) is what you enter for the state ID number if you don't have the state number.