Should I file NM state income tax for selling my rental property? I live and work in Texas all year.

Forum|Forum|3 years ago
January 29, 2023
2 replies
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I sold rental property in NM, but live and work in Texas. Do I need to file a NM state return or just my Texas federal including the SCHE E form?

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MonikaK1

Yes, you would need to file a New Mexico return if you sold a rental property in that state.

New Mexico imposes a tax on the net income of every resident and on the net income of every nonresident employed or engaged in business in, into, or from this state or deriving any income from any property or employment within this state.

Click here for more information from the State of New Mexico.

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vgdg2011Author

I did comply to your response and attempt to file NM on the sell of rental property. but the response was there was I had to make at least $250K as profit, do so.

I didnt near that much at all. so it wasnt accepted.

Thank you for your time.

DianeW777

The New Mexico (NM) notes may have been referring to your main home and not a rental home. If you sold you rental home situated in NM, and were required to file a federal return, you are required to file a NM tax return.

If you are a Nonresidents, including foreign nationals and persons who reside in states that do not have income taxes, must file here when they have a federal filing requirement and have income from any New Mexico source whatsoever.
- Instructions for NM Form PIT-1

It would seem unlikely that you have no tax due in NM. Be sure you step through the state interview carefully so that you answer all the questions correctly. After your review, please update if you have questions.

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