Question

State Filing Requirement for Capial Gain

Forum|Forum|4 years ago
March 16, 2022
1 reply
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I live in SC and have done so for eight years. I sold in May 2021 a vacation home in NC that I had owned for 10 years. I received a 1099-S from NC for the sale. Am I required to pay capital gains on the sale to both SC and NC? I prepared my 2021 tax return (with TurboTax) but have not filed yet. I used SC as my state return. If Im required to file the capital gain with NC do I need to purchase that from TurboTax as well. Also If I have to file with NC how does that get input into Turbotax so that all other tax information is considered. Thanks.

R Gough

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JohnB5677

You may have to pay in both states. If the SC tax rate is higher than NC you will get credit for the NC taxes but would have to pay the additional difference to SC.

South Carolina taxes capital gains as income (with a 44% deduction available on long-term gains) and the rate reach 7%

There is no capital gains tax in North Carolina; the gains are included as income and taxed at the flat income tax rate of 5.25%.

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