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March 5, 2022
Question

Can i report income from the sale of land in virginia on my md state income tax forms?

  • March 5, 2022
  • 1 reply
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where do i report proceeds from real estate transactions 1099-s

1 reply

March 6, 2022

You may need to file a non-resident return for Virginia and a resident return for Maryland. The real estate transaction of land in Virginia that is reported on a 1099-S is entered in a Virginia Non-resident tax return only if there is a gain from the sale of real estate (Virginia Instructions, page 5). If there is a gain on the land sale, first prepare the nonresident return, then your Maryland return. 

 

 

The State of Maryland taxes its residents on all of their income, no matter where it came from, but this year, Maryland allows a credit for taxes paid to other states and localities.

first, prepare the nonresident return, then your Maryland return, in order to have the credit computed correctly.

 

 

entering the 1099-S

 

You will enter the information from the 1099-S and your information about the date of purchase and the cost basis of the home that you have from your records. 

 

Here is a TurboTax Help article with instructions for entering this into your tax return using the Desktop version of TurboTax.  Use the exact search term in the instructions.

 

 

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