For out of state property how to allocate capital gains from sale of rental real estate?

Forum|Forum|6 years ago
March 12, 2020
1 reply
13 views

Hello:

I have a CA resident who owns a GA rental which he sold in 2019. How do I allocate the capital gains to GA instead of CA?

Thank you in advance!

Lacerte Tax

This topic has been closed for replies.

Best answer by George4Tacks

This is where I switch to batch input. Ctrl + W.

Scroll down to screen 18 and find the rental number associated with GA and be sure EVERY entry there is GA for the State column.

Scroll down to screen 22 and find the first depreciation item that they all refer to for the sale and be sure EVERY entry there is GA for the State column.

Since the home state is CA, this sale, rental and Passive Loss carryover will all go to CA and a credit should be created for the GA return, that should only show the sale, rental and passive loss carryover as GA income.

sjrcpa

Level 15

That is, how do you allocate it to GA, too. It is taxable in both states. CA will give a credit for tax paid to GA.

Where you entered the sale, code everything to GA.

The more I know the more I don’t know.

S

SBTSAuthor

Level 4

Thank you for the prompt response.

On Screen 22, Depreciation, there are 2 places where I can change the State:

# 1 - top right where it says "Assign entries to"

# 2 - next to each amount field there is an option to select US or State.

I have selected the out-of-state for the property sold as in # 2

but the "Assign entries to" I left that to the home State.

Am I doing this correctly?

George4TacksAnswer

Level 15

This is where I switch to batch input. Ctrl + W.

Scroll down to screen 18 and find the rental number associated with GA and be sure EVERY entry there is GA for the State column.

Scroll down to screen 22 and find the first depreciation item that they all refer to for the sale and be sure EVERY entry there is GA for the State column.

Since the home state is CA, this sale, rental and Passive Loss carryover will all go to CA and a credit should be created for the GA return, that should only show the sale, rental and passive loss carryover as GA income.

Answers are easy. Questions are hard!

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