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shf1957
Level 6
May 13, 2021
Question

Do you have to file an additional state return when selling property?

  • May 13, 2021
  • 1 reply
  • 6 views

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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1 reply

sjrcpa
Level 15
May 13, 2021

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.

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