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We lived & owned a home in Nebraska for many years. Five years ago we bought a condo in Florida, and two years ago became FL residents (6 months & a day). We sold our home in Nebraska in Nov. 2013. I know that we won't owe Federal taxes on the sale, since the sale price -let alone profit - was less than the $500K exclusion. And since there is no state income tax in FL, I won't owe FL anything. My question relates to Nebraska: Since the sold property was in Nebraska, do I have to file in Nebraska and pay on profits there or am I liable only in the state in which I resided when the Nebraska sale took place?
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Since the sold property was in Nebraska, do I have to file in Nebraska and pay on profits there or am I liable only in the state in which I resided when the Nebraska sale took place?

In your case neither. Your residency doesn't matter when you have Nebraska-source income. Thus, sale of Nebraska real estate yielding a taxable gain would require a nonresident return.

However, Nebraska starts with Federal AGI. In your case that will include no gain from the sale of the house. (I'm assuming that you do qualify for the exclusion.) I can't see anywhere on the Nebraska return where you would add that gain to your Federal AGI. Thus I conclude that you have no Nebraska-source income to report, thus no nonresident filing requirement.

Were I you I wouldn't take my word for it. You can check things out here:

http://www.revenue.nebraska.gov/tax/current/ind_inc_forms.ht...

Phil
Rule Your Retirement Home Fool
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Phil -

I both appreciate and like your response.
I will do some further checking, but yours is definitely my default position.

Thank you.
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What Phil said is correct, but I'd add - be sure about counting months, as you've been FL residents for what you say is two years. If it's really three, you're out of luck on excluding the gain on the NE house for federal and NE purposes.

Bill
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