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Michigan Resident, sold Florida property for a gain. No tax in Florida, but do Do I owe Michigan? And do I have to file in Florida anyway?

Forum|Forum|7 years ago
June 1, 2019
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My Michigan return picked up the sale since I pay cap gains at the federal level? But Turbo Tax asks me if the property was sold in a differrent state. Does that mean I dont pay taxes in Michigan? But I dont know how to back it out of my Michigan retrun if that is so? Also, I think taxes arent due in Florida...but somewhere it said I needed to file a florida return. Confused here. Thanks

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Best answer by Anonymous_

You do not owe anything to Florida since Florida does not impose an individual income tax.

~~Michigan, on the other hand, is going to tax you on all of your income/gains no matter in which state it was earned.~~

EDIT: See https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/2020/2020-IIT-Forms/MI-8949.pdf?rev=495becb25f52406ab834b52f2e82b372&hash=16F81AC049538D6A3B19B1B78174B2AF

Out-of-State Property. Gains from the sale of non business property located in another state are not subject to tax and losses are not deductible. Gains and losses from the sale of business property located in anotherstate are sourced based the location of the business activity.

A

Anonymous_Answer

Employee

You do not owe anything to Florida since Florida does not impose an individual income tax.

~~Michigan, on the other hand, is going to tax you on all of your income/gains no matter in which state it was earned.~~

EDIT: See https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/2020/2020-IIT-Forms/MI-8949.pdf?rev=495becb25f52406ab834b52f2e82b372&hash=16F81AC049538D6A3B19B1B78174B2AF

Out-of-State Property. Gains from the sale of non business property located in another state are not subject to tax and losses are not deductible. Gains and losses from the sale of business property located in anotherstate are sourced based the location of the business activity.

H

harold45

My understanding is Michigan does not require capital gains tax on non business property sold out of state. Therefore, a secondary home out of state would be excluded.

A

Anonymous_

Employee

@harold45 wrote:

My understanding is Michigan does not require capital gains tax on non business property sold out of state. Therefore, a secondary home out of state would be excluded.

Do you have a cite for this or a link to anything authoritative for that proposition?

I found the following and it does not make mention of any such exclusion.

See https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/MISC/2017/2017_CC41011.pdf?rev=dde85d4bf22348629291fb0ea0bb75f5&hash=E305642B443182224E2F22DE6F4DA9EA