CA resident sold 2nd home in AZ, Recorded the capital gain on 8949. Then calculated AZ tax just for that gain. Now on CA return. Where do I enter credit for tax paid to another state?
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I just discovered a check box on CA Capital Gains/Losses that excluded the transaction from CA Sch D. I would think that resolves the issue, right?
AZ is a reverse credit state, so the non resident state will give credit for taxes paid to the resident state. Look on the AZ return for credit for taxes paid to CA.
I did see that. Thank you.
No. Don't do that. CA taxes everything a resident earns.
So let CA calculate the tax and take the credit on AZ?
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