Steve M Posted February 22, 2008 Report Posted February 22, 2008 Client lives full time in Arizona. Inherited property 6 years ago in Utah and sold in 2007 for long term capital gains. Client has never lived or worked in Utah. I am assuming that the taxes are paid to Arizona and not Utah, but want to be sure that I am not missing something. Am I correct? Quote
OldJack Posted February 22, 2008 Report Posted February 22, 2008 You may be wrong! It is common that the sale of real estate requires a tax return and taxes paid for the local state with a tax credit for the taxes paid on the state of residence. Utah will be looking for taxes. Quote
lbbwest Posted February 22, 2008 Report Posted February 22, 2008 You may be wrong! It is common that the sale of real estate requires a tax return and taxes paid for the local state with a tax credit for the taxes paid on the state of residence. Utah will be looking for taxes. You are so dang smart OldJack, would you do my return? Believe it or not poster, you have to check BOTH state tax laws; in Michigan the real estate "belongs" to whatever state it's located in. E.G. commonly people have rentals in Florida, hoping to retire there. The rental loss is an addback to Michigan, the Florida loss is lost (pardon the pun, it's not that punny, oh I meant funny); because no state tax in Florida. The capital gain upon sale is NOT taxed in either state. lbb Quote
OldJack Posted February 22, 2008 Report Posted February 22, 2008 >>in Michigan the real estate "belongs" to whatever state it's located in.<< Michigan taxes?? Is that foreign taxes?? Quote
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