Selling a second home

Forum|Forum|4 years ago
July 27, 2022
1 reply
18 views

If I am a resident of Illinois and sell a second home in Michigan. 1) do I have to pay capital gains taxes in both states? Does Turbo Tax Premier give me a credit for paying Capital Gain tax in Michigan if I have to and give me a credit towards Illinois.

OpeA1

Level 6

Hello Trekie1!

On the federal level you will only pay capital gains on the sale of your home if:

"If you have a capital gain from the sale of your main home ( and second home), you may qualify to exclude up to $250,000 of that gain from your income, or up to $500,000 of that gain if you file a joint return with your spouse."

There are other qualification according to the IRS, please see following link for more details: https://www.irs.gov/taxtopics/tc701

I hope this helps.

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