Subject: Tax Question
Date: Mon, 28 Feb 2005
I'm selling a rental property in Colorado. Do I have to pay capital gains to Colorado and California?
Date: 04 Mar 2005
Presumably you're a California resident.
Yes. A sale of real estate is always sourced in the state it is located in. As a California resident, you are subject to California income tax on your worldwide income. A tax credit is available on the California income tax return to reduce or avoid double taxation. See California Schedule S and the related instructions. Consider consulting a professional for your tax return preparation for the year of sale.
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