in [Event] Ask the Experts: Investments: Stocks, Crypto, & More
817577
I am retired, and live in VA. I sold a second home in MD. MD withheld tax. I read that I must file a MD tax return.
Should I just add another state (MD) to my x.tax2018 file? I am worried because none of my other business concerns MD. If not, what is recommended.
You'll need to sign in or create an account to connect with an expert.
Complete a MD Non-Resident return before you start your VA Resident return.
A capital gain on the sale of property located in MD is taxable by MD, regardless of whether or not you are an MD resident. So if you had a capital gain on the sale, you must file a non-resident MD return in addition to your home state VA return. The gain is also taxable by VA, but you'll be able to take a credit on your VA return for the taxes paid to MD, so you won't be double-taxed.
The property was bought as is. Because of high fix-up expenses, there was a capital loss, which I am not allowed to take. But I should be able to get back the the withholding MD took at the sale. Right?
Correct. No profit = no tax.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
JRretires
Level 2
in [Event] Ask the Experts: Investments: Stocks, Crypto, & More
user17524233574
Level 1
in [Event] Ask the Experts: Investments: Stocks, Crypto, & More
bofaur
Returning Member
LORIT2015
New Member
Candyman
New Member