shf1957
Level 7
05-13-2021
03:37 PM
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Capital Gains from sale of house in NY was paid at the closing. Client lives in another state. When filing his federal, I know this is a gain.. do we have to pay on it again to the state he resides in?
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sjrcpa
Level 15
05-13-2021
03:39 PM
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Yes. Your resident state taxes all of your income. Generally, you can get a credit for tax paid to another state. You have to file a nonresident tax return in the other state. Withholding at settlement doesn't cut it.
The more I know the more I don’t know.
