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I'm currently a CA resident who owns a co-op apartment in NYC (Bronx borough). My unit has no mortgage. If I sell, do I have to pay taxes in NYC as well as CA?

Forum|Forum|7 years ago
June 5, 2019
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Best answer by Hal_Al

Yes and no.

You must pay NY income tax on the sale. You must also include the capital gain as income on your CA return. But CA will give you a credit, or partial credit, on the tax you paid to NY

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SweetieJean

Employee

Haven't you been declaring the rental income to NY all along?

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buttercup0076Author

I was until a year ago as I no longer have a tenant. I am going to do minor renovations and have it appraised again. I just want to know if I have to pay taxes twice.

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buttercup0076Author

Doesn't a sale become recognized as type of income??

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SweetieJean

Employee

see below

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buttercup0076Author

I expected to pay some taxes in NYC, I'm wondering if I have to pay again in CA - this is my real question.

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SweetieJean

Employee

CA should give you credit for taxes paid toi NY.

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SweetieJean

Employee

<a rel="nofollow" target="_blank" href="https://www.ftb.ca.gov/forms/2016/16_540s.pdf">https://www.ftb.ca.gov/forms/2016/16_540s.pdf</a>

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buttercup0076Author

Thank you for your answers.

Hal_AlAnswer

Employee

Yes and no.

You must pay NY income tax on the sale. You must also include the capital gain as income on your CA return. But CA will give you a credit, or partial credit, on the tax you paid to NY

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buttercup0076Author

Ok, thank you.

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SweetieJean

Employee

https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/pit/ny_source_income_nonresident.htm

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SweetieJean

Employee

Even if you became a nonresident prior to the closing of the sale, NY has a provision that requires
nonresidents to pay estimated personal income tax on the gain, if any, from sale or transfer of real property located in New York State.

<a rel="nofollow" target="_blank" href="http://www.tax.ny.gov/pdf/current_forms/it/it2663_fill_in.pdf">http://www.tax.ny.gov/pdf/current_forms/it/it2663_fill_in.pdf</a>