Learner1
Level 3

I had a home in California, and I changed domicile to Arizona in November. That makes me a part year resident in California and Arizona.

In December, I sold the California home for $400,000. Although it was my primary residence, due to depreciation recapture, $10,000 of the sale is a gain subject to capital gains tax.

It is California sourced income, so the $10,000 gain gets allocated to California.

Since I was an Arizona resident at the time, the $10,000 gain also gets allocated to Arizona.

Lacerte is picking up the $10,000 gain in the Federal return, and in the California return, but not the Arizona return.

In screen 17.1 I entered the following information:

In screen 55.101 I indicated that I moved in Arizona in November and remained a resident as seen in this screenshot:

Lacerte Question2.png

I therefore believe Lacerte has enough information to also allocate the 10,000 capital gain to Arizona's return. However, it is not, as you can see on line 20 of Arizona 140PY below:

Lacerte Question3.png

Lacerte is only showing $6,000 for capital gains when it should show $16,000 for capital gains.

Again, ProShares does not have this problem. Me doing it by hand does not have this problem. It is therefore pretty frustrating to struggle with Lacerte on this. What am I doing wrong with Lacerte to not have it pick up this out of state sale during my Arizona residency period?

Thanks in advance for your assistance.

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