I sold my vacation home in Nevada, I live in Minnesota, is this going to be a taxable transaction on my Minnesota tax return?

[SWH008]

I'm using Turbo Tax Home & Business and it forced me to enter it as a sale of an investment and not the sale of a second home.  Looking at my tax calculation after entering the information I'm getting taxed on my Minnesota tax return and I don't think that is right.

[NancyG · Accepted solution]

It is taxable in Minnesota, your home state.  Your home state would normally give you credit for taxes paid to another state.  The transaction would have been taxed in Nevada - but as you probably know - Nevada does not have an individual state income tax. (I know exactly how you feel - I will be paying tax to my home state for a sale of my "investment" property in Florida! I agree - it does not feel fair)