Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Next Thread
Author: twputnam One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121222  
Subject: MD tax question Date: 8/21/2003 12:46 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
lorenzo2

Since you reside in MD, perhaps you can answer a MD tax question for me. Does MD let one exempt the gain on a personal residence using the same rules as the Feds? It would seem that they do since a MD tax return starts with the 1040 and the gain would not show up on the 1040 if it meets all the requirements - less than $500k for married, lived in 2 yrs out of last 5 yrs, etc.

t
Print the post Back To Top
Author: lorenzo2 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 66577 of 121222
Subject: Re: MD tax question Date: 8/21/2003 2:13 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
Does MD let one exempt the gain on a personal residence using the same rules as the Feds?

I assume so, and for just the reason you state. In doing Maryland taxes, you start with federal AGI, make some obvious additions and subtractions (e.g., interest on non-MD obligations), adjust deductions a bit (e.g., remove MD income taxes paid), arrive at net Maryland taxable income, then calculate state and local taxes. In particular, there is about a page worth of additions to income, none of which relates to the gain on selling a residence. So the only way it can get there is by flowing through from the federal return as a capital gain, which means federal capital gain rules apply.

Do other states do this differently? I see that you're in California, and I gather your tax people are a mite more creative. Say, are you running for governor? In that case, you must be putting together a taxpayer friendly tax code! Good luck, hope you beat the porn queen, at least!

Lorenzo

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Next Thread
Advertisement