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Old 01-20-2015, 06:32 PM
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Sale of cabin in different state

We sold our cabin in Wisconsin,we live in Minnesota. Do I pay capital gains just to Wisconsin and the Federal Goverment?
I also built it myself 15 years ago how do I determine how much capital gains it should be.



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Old 01-21-2015, 12:23 AM
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We sold our cabin in Wisconsin,we live in Minnesota. Do I pay capital gains just to Wisconsin and the Federal Goverment?======>>>>>>> As a minnesota resident, you are taxable on any income, no matter where you earn it. Therefore, no matter what state you have property in, you would have to report the gain to minnesota. If you had sold property in most states, you would have had to file a state return and pay a tax. Then you would also have had to report it to minnesota. minnesota, however, would give you a credit for the tax that you paid to the Wisconsin not subject to double taxation, subject to some limitations. The sale of property also generates capital gains that must be reported to the IRS. However, IRS rules indicate that only certain property is subject to capital gains tax. For example, the sale of a home that generates a capital gain for the seller is subject to capital gains tax. However, proceeds from the sale of personal property in the home, such as washing machines, draperies and lawn furniture, are not considered appreciable investments and not subject to capital gains taxes. However, the proceeds from the sale of personal property are subject to personal income tax.
I also built it myself 15 years ago how do I determine how much capital gains it should be==========>>>>>>>> the formula for calculating the gain or loss involves subtracting your cost basis from your selling price. Selling price- Cost Basis= Gain or LossGain on the sale of your home is reported on Sche D /form 8949as a capital gain . If you owned your home for one year or less, the gain is reported as a short-term capital gain . If your owned your home for more than one year, the gain is reported as a long-term capital gain .



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