Question

How to File for Sale of Second Home In Another State

Forum|Forum|6 years ago
February 11, 2020
2 replies
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Hello,

I live and work in California and have sold a home in Oregon in 2019. The home in Oregon was used exclusively as a rental. I know I have to file an Oregon non-resident tax return and a California state return. I will be using TurboTax Premier. My question is are the following steps correct?
1. Download a copy of the Oregon state form 2019 Form OR-40-N and fill that out. The only income will be for the sale of the home (which includes capital gains), including the money that was already withheld by the state of Oregon when the home sold. I do not need to use TurboTax for this.

2. Use TurboTax Premier to file my Federal and California state returns. The California state return will include the sale of the home in Oregon as income and capital gains, but I believe California will ignore that since it was already paid for Oregon.

Thanks in advance

sissonr1951

Carl11_2

Employee

Reporting the sale will not change one iota on your federal return. You'll report the sale in the Rental & Royalty Income (SCH E) section of the program. Then be aware of the following:

- Do not e-file "any" tax return until you have completed "all" tax returns. This is because when you complete the resident state return it "WILL CHANGE" things on both your federal and non-resident state return. So file nothing until all is completed and "you" are satisfied with the results. Otherwise, you risk an "i need to amend" nightmare.

- Complete your resident state return "LAST". This is because many states have reciprocal tax agreements, and this will allow the program to "correctly" take such agreements into account if they exist between the states you are filing a state tax return for.

-When doing the federal return make "absolutely" "certain" that you "correctly" identify what state "all" income is from. Otherwise, your state returns *will* *be* *wrong* and the only way to fix them is to first fix the federal return, then work through the state returns all over.

- This is the most important point I can make.... *READ* *THE* *SMALL* *PRINT*. All of it! On every single screen! Programmers didn't put that small print there because they were bored.

DawnC

Employee

You are going to want to enter everything on your federal tax return. See the instructions for filing a nonresident return below, which you will do for Oregon. You will indicate on your federal return that you lived in CA and also had income from Oregon. TurboTax will transfer everything that is needed to both the Oregon nonresident and the California resident returns. You will be asked how to allocate the income when you prepare the state returns. Prepare the Oregon return first so that any tax paid can be credited to California.

How do I file a nonresident state return?

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