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Financial Planning / Tax Strategies
|Subject: Re: state residency tax implications of home sal||Date: 10/14/2002 12:49 PM|
|Author: pmarti||Number: 61702 of 121585|
Does it matter what I list as my address on my final contract documents when I sell my townhome? Are there any tax advantages/disadvantages or does it really matter?
Yes, it matters. Putting other than your correct current address on the papers could be construed in some circles to be fraudulent, especially if it was done to reduce your tax exposure.
As you noted, for Federal purposes you'll have income equal to the depreciation. It sounds like you're currently a NY resident, so no doubt they'll want their cut. Whether CO will also want something I can't tell, knowing nothing about CO income tax. You also have part-year residency in CA, if you had income during your stay there.
In short, your 2002 taxes look to be a mess. I always advise use of a paid preparer when rental property is sold. (If you doubt me, grab a copy of Form 4797 and its clear-as-a-bell instructions.) In your case, I think a paid preparer is even more needed because of the multi-state considerations.
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