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    Beemaa's Avatar
    Beemaa Posts: 1, Reputation: 1
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    #1

    Aug 29, 2010, 06:25 PM
    Reporting Capital Gains
    My primary residence is in NJ. I have a vacation home in NC which I plan to sell. I will have a capital gain of $145,000. I am told I have to pay the capital gains tax to NC since the property is located there. I am also told that I have to report the capital gain income on my NJ state income tax return. If this correct? It feels like double taxation to me.
    wnhough's Avatar
    wnhough Posts: 200, Reputation: 12
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    #2

    Aug 29, 2010, 08:24 PM
    Quote Originally Posted by Beemaa View Post
    It feels like double taxation to me.
    Exactly. Agreed!! But that is the tax law.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #3

    Aug 30, 2010, 04:48 AM

    If you have to report the capital gains on your NJ tax, you will also claim credit for taxes paid to NC.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #4

    Aug 30, 2010, 06:52 AM
    Quote Originally Posted by MukatA View Post
    If you have to report the capital gains on your NJ tax, you will also claim credit for taxes paid to NC.
    Right. The size of the credit that you take on your NJ tax return works out to be the lessor of (a) taxes actually paid to NC and (b) the amount of tax NJ would charge on that income.
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