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Posted by Vic Dura on April 9, 2008, 12:23 pm
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I am a 25-year resident of Alabama but own some real estate in NY
which I will likely be selling this (2008) year. Do I have to file a
NY non-resident tax return (IT-203??) to report any gain, or do I just
report it in AL?
If I have to report in both NY and AL,
do I try to get credit in AL for the NY tax paid OR
do I try to get credit in NY for the AL tax paid?
Thanks
--
At first they laugh at you, then they ignore you, then they fight you, then you
win.
--
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Posted by Phil Marti on April 9, 2008, 12:44 pm
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"Vic Dura" wrote:
>I am a 25-year resident of Alabama but own some real estate in NY
> which I will likely be selling this (2008) year. Do I have to file a
> NY non-resident tax return (IT-203??) to report any gain, or do I just
> report it in AL?
You will definitely have to file a NY return and pay NY tax on the gain.
You will probably also have to include the income in your AL income, but
check the AL instructions.
> If I have to report in both NY and AL,
> do I try to get credit in AL for the NY tax paid OR
> do I try to get credit in NY for the AL tax paid?
Usually the residence state offers some sort of credit paid to another
state. Again, look to the AL instructions.
--
Phil Marti
Clarksburg, MD
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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
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<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
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<< Copyright (2007) - All rights reserved. >>
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Posted by Katie on April 9, 2008, 4:11 pm
Please log in for more thread options > I am a 25-year resident of Alabama but own some real estate in NY
> which I will likely be selling this (2008) year. Do I have to file a
> NY non-resident tax return (IT-203??) to report any gain, or do I just
> report it in AL?
>
> If I have to report in both NY and AL,
> do I try to get credit in AL for the NY tax paid OR
> do I try to get credit in NY for the AL tax paid?
Yes, you must file a NY return to report and pay tax on the gain.
IT-203 is the form.
Alabama will give you credit for the tax you pay to NY; see Form 40,
Schedule CR. However, the credit will be limited to the proportion of
your Alabama tax liability that relates to that income. Since it is
likely that the NY tax rate will be higher than the AL rate, you may
not get credit for all of the tax you pay to NY. Net, you will pay
state income tax on that income at the higher of the two states'
average rates for your income level, filing status, number of
dependents, etc.
Katie in San Diego
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Harlan Lunsford on April 9, 2008, 7:58 pm
Please log in for more thread options Katie wrote:
>> I am a 25-year resident of Alabama but own some real estate in NY
>> which I will likely be selling this (2008) year. Do I have to file a
>> NY non-resident tax return (IT-203??) to report any gain, or do I just
>> report it in AL?
>>
>> If I have to report in both NY and AL,
>> do I try to get credit in AL for the NY tax paid OR
>> do I try to get credit in NY for the AL tax paid?
>
>
> Yes, you must file a NY return to report and pay tax on the gain.
> IT-203 is the form.
>
> Alabama will give you credit for the tax you pay to NY; see Form 40,
> Schedule CR. However, the credit will be limited to the proportion of
> your Alabama tax liability that relates to that income. Since it is
> likely that the NY tax rate will be higher than the AL rate, you may
> not get credit for all of the tax you pay to NY. Net, you will pay
> state income tax on that income at the higher of the two states'
> average rates for your income level, filing status, number of
> dependents, etc.
>
> Katie in San Diego
>
Katie, even though we don't have any numbers to work with here, I dare
say that he'll come out okay on the Alabama return.
Just a hunch based on 35 years of doing Alabama form40's. (grin
ChEAr$$$,
Harlan Lunsford, EA n LA
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Katie on April 10, 2008, 1:21 am
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> Katie, even though we don't have any numbers to work with here, I dare
> say that he'll come out okay on the Alabama return.
> Just a hunch based on 35 years of doing Alabama form40's. (grin
>
> ChEAr$$$,
> Harlan Lunsford, EA n LA
>
Well, I would expect the average rate in Alabama (2% to 5%, right?) to
be lower than the average rate in NY (4% to 6.85%), but of course
there are other variables that could change the result. I just like
to warn people that they may not get every dollar of source state tax
back from the residence state, so they don't get surprised.
Katie
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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