sold vacation home

Forum|Forum|2 years ago
January 29, 2024
2 replies
0 views

Sold condo in SC .

Resident of NC.

Paid tax at time of sale to SC.

Now it appears I am also paying tax to NC on the profit from the sale.

How can I exclude the profit from NC?

Multiple States

Best answer by TomD8

"How can I exclude the profit from NC?"

You can't. Your resident state of NC can tax ALL your income, regardless of where it's from. But as @TomK2023 explained, NC will credit you for the taxes paid to SC, so you won't be double-taxed.

TomK2023

Yes, you have to file a nonresident tax return in the state that the property is in. The gain from the sale is taxed by that state.

In most cases, if you live in state that has income tax, you will get a credit on your tax return for the state you live in for part or all of the tax that you pay to the other state.

Once you've determined that you need to file a nonresident state return, the first thing you want to do is make sure you've filled out the Personal Info section correctly:

With your return open, select My Info in the menu.
On the Personal info summary screen, scroll down to Other State Income, and select Edit.
At the Did you make money in any other states? question, answer Yes and make sure your nonresident state(s) are selected from the drop-down.
Select Continue to return to your Personal info summary.

After you finish your federal return, you'll automatically move to the State tab, where you'll see your nonresident state(s) listed in addition to your resident state.

Tip: To ensure accurate calculations, always complete the nonresident return first if filing in multiple states because your resident state might give you a credit for any taxes paid in that situation.

TurboTax FAQ: How do I file a nonresident state return?

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

TomD8Answer

Employee

"How can I exclude the profit from NC?"

You can't. Your resident state of NC can tax ALL your income, regardless of where it's from. But as @TomK2023 explained, NC will credit you for the taxes paid to SC, so you won't be double-taxed.

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