NYS tax on capital gains from sale of vacant land.

Forum|Forum|1 year ago
March 25, 2025
1 reply
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Keep trying to allocate land sale proceeds (long term capital gains ~78000) to NYS as a non resident. No NYC tax liability! My federal income is high enough that I should be subject to tax..

Every method available during interview in TurboTax keeps refunding me all but $5 of the of the estimated taxes (9k+), already paid to NYS on my IT 2663, which then reflects as as tax due on my resident return in MS. The total tax looks right, but I would expect to pay it in NY not MS.

Does New York not tax capital gains on non-residential real property sales by non residents. If not, what section/form do I allocate this in. I’ve tried each different way I can find in the interview.
Thanks

Best answer by AmyC

NY - NY does tax capital gains and it should be included on your form as income. You had tax withheld to cover it and know that NY should have their share. In the NY return:

Review page summary
Locate general information section.
verify you selected nonresident
verify who claims the income
Under NY income allocation
select nonresident other allocations
enter the capital gains.
Take a look at your allocation worksheet to see the income is properly showing under nonresident.
Look at your IT 203 pages 3 & 4 to see your total income being allocated by your NY income.

MS - your resident state does tax all income earned while living there and does give a credit for the NY state tax paid.

AmyCAnswer

Employee

NY - NY does tax capital gains and it should be included on your form as income. You had tax withheld to cover it and know that NY should have their share. In the NY return:

Review page summary
Locate general information section.
verify you selected nonresident
verify who claims the income
Under NY income allocation
select nonresident other allocations
enter the capital gains.
Take a look at your allocation worksheet to see the income is properly showing under nonresident.
Look at your IT 203 pages 3 & 4 to see your total income being allocated by your NY income.

MS - your resident state does tax all income earned while living there and does give a credit for the NY state tax paid.

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ScjensenAuthor

Thanks.
I know where this is on NY forms, but I’ve been unable to make Turbotax co-operate on getting the information proper places. I’ve worked the rough math out on NY paper forms, and I know the NY gets multiples more than the answer TurboTax comes up with.
Each, and every single option in the interview process for allocation delivers the same wrong result.
I’ve checked the allocation in review and it claims it is there, but the math keeps coming back like it is not.
Will delete the NY state return and try one last time. If it doesn’t work, bye bye TurboTax.
Frustrated as hell with the interview process and inability to see/use forms when things don’t work. Paper may be better than the hours of fighting the interview for more complex issues, even if I can’t efile.