kate
Level 1

I am working on 2021 estimated taxes for a client.

Client moved from DC to PA in March 2021.  DC Home sold in April 2021, while she was a resident of PA.  The home has a gain even after the $250k exclusion is applied.  For 2021, she will have a PY DC and PY PA return.  DC does not have a nonresident return.

I copied her 2020 return into a practice return and entered the home sale so I could more accurately do estimates across the two states.  Filled out both the PY and NR allocation worksheets.  Home sale is during PA residency but from a DC source. 

No gain is showing up on either the DC or PA returns.  It seems DC would tax this nonresident capital gains from a DC source and then I would take a credit on PA return.  Suggestions?

 

 

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