Filing taxes for the sale of a vacation property that is outside my state of residence

[Tim M of MD]

I am a full-time resident of Maryland and recently sold a vacation home I had in West Virginia. I paid taxes to the state of WV as part of the sales transaction. Can I deduct the taxes paid to WV from my federal and MD taxes?  Do I need to file a tax return with WV?

[MaryK4]

You will be able to take the credit for the taxes paid to another jurisdiction for the taxes you paid to West Virginia on your resident Maryland tax return.  There is no credit for the federal return.

[Tim M of MD]

Thank you. In order to do this mechanically in Turbo Tax, do I need to complete a WV state return?  I ask because when I use the option to get Credit for Taxes Paid to Another State and select WV from the dropdown list, I receive a message that says I must attach a copy of my WV return to my MD tax return. I had not planned to complete a WV tax return.  I do have a WV Return of Income Tax Withholding for Nonresident Sale of Real Property, which shows the taxes paid to WV.  Can I simply include a copy of this form with my MD return to prove to MD what taxes I paid to WV?

[JohnB5677]

Yes you will have to complete a WV tax return.

• It would record the actual sale of the property that is not posted to MD.
• It seems that you've found the place on the MD return to record the tax being credited.