Kobebean
Level 3
‎03-01-2022 12:51 PM

Hello,

 

I have a client who has Rental property in Texas but lives in CA. He sold that property in 2021 and has a capital gains for Federal.. Does he have to report Capital Gains in CA for the sale of the rental or because TX has no state tax he is off the hook? If so how do I stop  CA from taxing him as it carries over from the FED?

 

Thanks

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Just-Lisa-Now-
Level 15
Level 15
‎03-01-2022 12:53 PM

If hes a CA resident, he will pay taxes on that gain to the state of CA. 

If TX had charged him income taxes as well, then CA would give credit for taxes paid to TX, so not to be double taxed, but TX has no income taxes, so this doesn't factor in.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Kobebean
Level 3
‎03-01-2022 12:55 PM

Thanks 

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