Jun 19, 2012, 11:28 AM
i inherited a house out of state where they have state income taxes. I live in a state without state income taxes. I never lived in the house, I never rented it out, it generated no income. It was under $100,000. Federal taxes there was NO capital gain. It was sold below the appraisal and with costs of sale, it was not a gain. Do I still have to report the sale on that out of state income tax form? even if it's not a gain and no income generated? it's an actual loss, in that it was sold below the appraisal at the time of death along with costs of sale. Living in a state that has no state income taxes, i just learned that the state the property was in, does have state income taxes and I need to know was I suppose to still file that state's income tax form, to report the sale. even if it was no income, and no gain? According to federal income tax, it was no income and no gain. If I should have still reported it's sale on that states income tax form, as a non resident, should i file one now? late? or just wait until they contact me and then provide the info. Can they penalize me for not filing, even if nothing was due? Do they calculate the capital gain/loss the same as federal? based on the appraisal at the time of death in relation to the sales price and expenses of sale?