Question

New Resident of Oregon, Selling Home in Washington State

Forum|Forum|6 years ago
February 6, 2020
1 reply
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Hello,

I recently moved to Oregon to take a new job after living in Washington for 35 years and owning a home in Seattle for 8 years. In Washington state, there is no income tax and capital gains tax, so income earned on the sale of the home (after federal taxes) is kept by the owner.

I understand that California will acknowledge this, and allow new residents of California who sell property in Washington state to honor Washington's lack of income tax and capital gain on state fillings. However, I've been unable to come across any information regarding the sale of a primary home in Washington state after moving to Oregon, and what the tax implications might be.

DaveF1006

From what i have been able to research, you may be charged for capital gains on the sale for your house in Oregon. i found this article in this link.

If you moved to or from Oregon within the last tax year, you are a part-year Oregon resident. All of your income will be taxed for the time you were an Oregon resident, even if it was earned outside of Oregon. All income earned within Oregon will also be taxed, even if you lived elsewhere. If your income is greater than the amount in the income table in the Oregon Income Tax Part-Year Resident/Nonresident Instructions, and you lived in Oregon for part of the year, you have to file an Oregon part-year resident return using Form-40P.

Oregon does however have a capital gains exclusion for the sale of a house. Please view this document for further details. Look in section 3 entitled Eligible Home Sale Exclusion.

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