lorenzo2Since 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
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
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra