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June 3, 2019
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Should two states get to tax a capital gain if I was a year round resident in one

  • June 3, 2019
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    Best answer by TerryA

    If the property was in another state, such as real estate, then that state gets to tax the gain as well as does your resident state. This doesn't apply to intangibles such as stocks, etc.

    Your resident TT/state (generally - it's the other way round for a handful of states) will prepare the other state tax credit for you for some or all of the nonresident state's tax on that gain that your resident state is taxing also. Prepare the nonresident state first, then your resident state.

    1 reply

    TerryAAnswer
    Employee
    June 3, 2019

    If the property was in another state, such as real estate, then that state gets to tax the gain as well as does your resident state. This doesn't apply to intangibles such as stocks, etc.

    Your resident TT/state (generally - it's the other way round for a handful of states) will prepare the other state tax credit for you for some or all of the nonresident state's tax on that gain that your resident state is taxing also. Prepare the nonresident state first, then your resident state.

    June 3, 2019
    Do you mind explaining this further? Why would it make sense that a citizen has to pay double state tax on physical real estate property? Thank you.