East Bay Business Daily

If i have capital gains and filing tax in two states. Do I have to pay tax on the same gain to two states?

If i have capital gains and filing tax in two states. Do I have to pay tax on the same gain to two states? OR should I distribute gain based on the selling date? Thank you all for your answers. I had moved to New Jersey from Pennsylvania during august last year (2006).

Public Comments

1. it depends on the state some states require income from all sources so youll have to check the rules for both states.
2. You would normally report all gains on your resident state's tax return. If you are filing a state tax return as a non-resident, you would only report income from that state only. If you are filing as a part-year resident in two different states, you could allocate the gains based on the date of sale.
3. You will pay tax based on where the gain arose. If it was real property you will pay tax to the state the property was located. If it is investment gain you pay based on your state of residence. If you are filing in two states because you moved during the year it is impossible to advise as you have not said which two states it was.