Sold real property in MD, live in VA, retired.

[md_berger]

 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.

[Rainman12]

Complete a MD Non-Resident return before you start your VA Resident return.

[TomD8]

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.

[md_berger]

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?

[Rainman12]

Correct. No profit = no tax.