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Sold rental Property in Illinois while 100% resident in Colorado do I report Capital Gain in Illinois return

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June 1, 2019
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TurboTax Basic Windows

Best answer by TomD8

You report it in both states. IL can tax a capital gain from the sale of property located in IL. CO can tax ALL your income, regardless of where earned.

You'll be able to take a credit on your CO return for taxes paid to IL, so you won't be double-taxed.

In TurboTax, be sure to complete your non-resident IL return BEFORE you do your home state CO return, so that the credit flows properly.

T

TomD8Answer

Employee

You report it in both states. IL can tax a capital gain from the sale of property located in IL. CO can tax ALL your income, regardless of where earned.

You'll be able to take a credit on your CO return for taxes paid to IL, so you won't be double-taxed.

In TurboTax, be sure to complete your non-resident IL return BEFORE you do your home state CO return, so that the credit flows properly.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

H

ha-diane79

I sold my 2nd home in IL at a loss. I used step-by-step method, there is only one question related to the sale of the property was:

Capital Gains Adjustment

On your federal return, you reported gains from the sale of stock or other property.

Did you acquire any of that property before August 1, 1969?

I have a net gain of stock and mutual funds over the loss of selling the 2nd home. How does it know that the sale was in IL and it was 2nd home and the sale was at loss?

My answer is no because I bought this 2nd house in 2017. Does that all I have to do, TurboTax will automate transfer all information from federal to IL?

V/r,

Diane