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October 24, 2024
Question

Income tax on property sale in different state

  • October 24, 2024
  • 1 reply
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Do Montana residents have to pay income tax on the money made on the sale of a rental property in another state?

1 reply

Employee
October 24, 2024

If you have a capital gain (income) from selling property in another state, that is considered income that is "sourced" to that state.  You would be required to file a non-resident return for that state to pay any income tax owed to that state because the income came from that state.  If you live in a state with its own income tax, you get an offsetting credit in your home state so you aren't double-taxed. 

October 24, 2024

That is great information. Thank you so much!