Question

Colorado resident sold Oregon second home for gain; reporting question

Forum|Forum|1 year ago
March 15, 2025
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We, Colorado residents, sold a second home in Oregon in 2024 and received an OR-18-WC reflecting the cap gain withheld in Oregon. Am running TurboTax Premier. How do I report this LTCG in TTP? Second, do Colorado and Oregon have setoff agreement where tax withheld in Oregon is credited in Colorado? Or will Colorado collect state cap gains and Oregon refund the amount withheld? Need a friend....

M

MAK70

Both states use the federal tax amounts so it will transfer from the federal entry. Here are the instructions: Where do I enter the sale of a second home.

You will file the Oregon nonresident tax return and if taxes are due, the withholding will apply. Note: you will have to enter the OR-18-WC amount under federal taxes- Estimates.

As Colorado resident, you will have to report the income, but you will get a credit for the taxes paid to Oregon so you will not be double taxed. (This is why you complete the nonresident Oregon first).