Sale of collectible outside of your domiciled state

Forum|Forum|6 years ago
April 22, 2020
1 reply
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Hi - hope everyone is staying safe.

If you live f/t in AZ but inherited artwork from someone in NY and it sells in NY - besides any sales tax that NY would expect - which state will tax the capital gains?

Thank you

Lacerte Tax

This topic has been closed for replies.

Best answer by itonewbie

oh, the NY code New York source income of a nonresident individual

(A) the ownership of any interest in real or tangible personal property in this state; or

Is that it? Looks like they want it. Thank you for bringing this up.

Thank you all

Yes, that's the one.

sjrcpa

Level 15

Where was it kept from when you inherited it until you sold it?

The more I know the more I don’t know.

L

LSTAXAuthor

Level 5

It stayed in NY. Additionally, they inherited a rental property in NY so they file as a non resident of NY for that income. Capital gains on the artwork would be much larger in NY than AZ.

Thanks again

sjrcpa

Level 15

Was the art in the NY rental property?

Art is, generally, movable personal property but if it never moved out of NY I'm thinking it is NY property subject to NY tax.

The AZ tax should be wiped out by the credit for tax paid NY.

If the dollars are large, I'd start researching this.

The more I know the more I don’t know.

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