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Client lives and works in CA. He sold rental property in VA. If I process CA first all the income is taxed and VA non resident shows a credit for the tax paid in CA. Is this correct? If so VA does not receive any tax on the sale? If I process VA first CA taxes the sale and does not process a credit for the double taxed income.
It's been years since I have had one of these and I am a bit rusty on what is processed first
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I do the nonresident one first, that way taxes will carry to the resident return for taxes paid to another state, but I think if you jump back and forth between the 2 a few times, it should eventually pull it over.
Oh if theyre a reverse credit state, then doing the resident return first, might make more sense.
I know CA/OR and CA/AZ are reverse credit states, maybe they are with VA too.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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" If I process CA first all the income is taxed and VA non resident shows a credit for the tax paid in CA. Is this correct? "
The tax result sounds correct.
I don't use ProSeries so listen to Lisa about the processing order.
The more I know the more I don’t know.
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Thanks for the responses. It just seems VA should receive the tax from the sale not CA but it shows a credit for tax paid to CA on the VA. So VA gets nothing. 🙄
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VA gets all the taxes from the nonresident Californians. Probably comes out to be more than they give up.
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They live and work in CA. VA is the nonresident state, since theyre a reverse credit state with CA, VA gives the credit for taxes paid to CA.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Client sold property in CO but lives in AZ. 1. Which form? 2. Is there reciprocity so that client is not double taxed?