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January 10, 2021
Question

illinois state taxes of out of state capital gains

  • January 10, 2021
  • 1 reply
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I currently live in Illinois and recently sold a property in Washington. This property was not my primary residence and was purchased when I lived in Iowa. Do I need to pay Illinois capital gains tax on the property sold if sold in Washington state.

1 reply

January 10, 2021

yes because you're a resident (domiciled) in Illinois.  just like federal law which taxes US citizens and the equivalent on worldwide income so too do states in which you're domiciled (have a permanent residence)  that have an income tax.  you should be glad that Washington state has no income tax.