I am New Jersey resident and sold a property in New York in 2015, for "New York Income Allocation" purpose, should I put this capital gain in New York or New Jersey?

Forum|Forum|6 years ago
June 1, 2019
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TurboTax Premier Online

DS30

Employee

Both. You will need to report this sale of NY property on both a NY nonresident state income tax return and on your NJ resident state income tax return.

You will need to file as non-resident for NY (for your NY source income only - your NY capital gains for property located in NY). You will also need to file a NJ resident state tax return (for all income from all sources including NY capital gains). You will get a state tax credit in NJ for any NY state taxes that you paid on your nonresident NY state tax return.

You will want to work on your non-resident NY state tax return first. You will then take a tax credit from your non-resident NY taxes on your resident NJ state tax return. (Please note that you will only get a tax credit for your NY taxes up to the amount of NJ taxes that would have been paid if the income was earned in NJ).

Just follow the TurboTax guide when working on your states (remembering to do your non-resident state return first) and TurboTax will do all the calculations and credits to your resident states return

Here is additional information about filing in multiple states (select "see more answer" to view the entire attachment)

https://ttlc.intuit.com/replies/3300797

lcchen2000

If I sold NY investment property at a loss but I am a NJ resident. I have no other source income/loss from the NY so I do not owe any tax if I file NY return.

Do I just take the loss deduction on NJ return and not having to file NY non resident IT-203?

Thanks

AmyC

Employee

NJ- you will claim the loss.

NY - it depends.

The concern is that you received money, regardless of it resulting in a loss. You must file Form IT-203 if you meet any of the following conditions:

You have income from a New York State source (see Nonresidents: New York source income) and your New York adjusted gross income (Federal amount column) is more than your New York State standard deduction. Complete Form IT-203, lines 1 through 31 and compare the line 31 Federal amount to your standard deduction from the New York State standard deduction table.
You want to claim a refund of any New York State, New York City, or Yonkers income taxes withheld from your pay or from your unemployment insurance benefit payments.
You want to claim any of the New York State, New York City, or Yonkers refundable or carryover credits.

@lcchen2000

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