Question

Geeorgia Incomee Tax Issue

Forum|Forum|4 years ago
August 9, 2021
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I sold property in Florida and paid federal income taxees and Florida capital gains. Florida has no income tax. Since thee property is inot in my state where I live (Georgia), do I need to pay income taxes on that sale of Florida property?

S

SundayInSalem

You will pay Georgia income tax on any capital gain from the sale of your Florida property. Georgia residents are taxed on income earned everywhere, so profit from the sale of a property in Florida is included on your GA income tax return. Georgia allows a credit for income tax paid to another state, but since FL has no income tax, there is no credit on the GA return for tax paid to another state.

Georgia treats capital gains the same as other income so your capital income will be automatically included in federal adjusted gross income, which is the staring point for GA income tax.

Georgia has a retirement exclusion for taxpayers aged 62 or older, or for taxpayers who are totally and permanently disabled. Retirement income includes items such as: interest, dividends, net rentals, capital gains, royalties, pensions, annuities, and the first $4000.00 of earned income. Earned income is income from a trade or business, wages, salaries, tips, or other compensation. If married, each spouse may claim the deduction if they qualify.