Sold Rental in FL, Live in Maryland, MD Wants to tax capital gains

Forum|Forum|2 years ago
February 7, 2024
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Hi, I sold a condo in FL I had for about 10 years. Bought for 40k, sold for 190k, Capital gains are 128k. FL has no tax. When i do my taxes, the Federal return lists 128k as capital gains. I live in Maryland so, Maryland wants to tax the 128k. Is there anything i can do that says i made this money in FL, not Maryland? No LLC. Property was in my name and my wife's name. We did not live in it at all. thx Art

Vanessa A

No. It does not matter that the property you sold was in FL since you live in MD. Since MD is your home state, any money you earn anywhere in the world is taxable by MD. Generally, when you live in one state and earn money in another state, you end up paying taxes to both states with a credit from your home state to offset the taxes to the other other state. Since FL doesn't have a state tax, there would not be a credit for taxes paid to other states it will just be MD taxes the profit.

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