Sale of Inherited Home

[171han]

Last year my brother and I sold a home we inherited from our father.  We each live in different states from where the home is located.  We each paid a non-resident 8% income tax on the sale of the home to that state at the time of closing.  I have two questions:

1 - Where in the CD/Download version of Turbo Tax would this payment be reported?

2 - Do we have to file a non-resident income tax form for that state other than the one filed at the time of closing?

Thanks for any assistance.

[Mike9241 · Accepted solution]

1 - Where in the CD/Download version of Turbo Tax would this payment be reported?

what state? there probably was a tax form that shows the withholding

2 - Do we have to file a non-resident income tax form for that state other than the one filed at the time of closing? we don't know what you filed at the time of closing. it might have been just an estimated tax declaration which means you would have to file a return.

do you have your own state income tax? if so the sale will likely be taxed by your home state. to get credit for the non-resident taxes you paid you must file the non-resident return

in TurboTax, the non-resident returns must be prepared before the resident state return so the proper credit is calculated

[171han]

Thanks for the response.  The state is Maryland.  We filed a Maryland Return of Income Tax Withholding
for Nonresident Sale of Real Property.  The withholding is shown on that firm.  Perhaps that's all that's required?  I do have state income tax.