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Sale of Sock as a nonresident

Forum|Forum|7 years ago
March 11, 2019
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I have stock in TDAmeritrade. For 10 months of 2018, I was a resident of Mississippi. For 2 months of 2018, I was a resident of Alabama. I am trying to determine how I report stock sold in month 3 (March 2018) on my Alabama Tax Return. For Example 1: Let's say I sold Stock X on March 5, 2018 for $5,000. At that time, I was a resident of Mississippi. On my Alabama return it stays: Amount received: $5,000 and Cost Basis $5,500. Since the stock sold before moving to Alabama, would I just zero this entries reporting the full amount on the Mississippi return or would I enter some Depreciated Allowed amount? If so, what entry would I put for DA amount?

Example 2: Let's say I sold Stock Y on December 1, 2018 for $2,000. At that time, I was a resident of Alabama. On my Alabama return it stays: Amount received: $2,000 and Cost Basis $2,500. Does the entire entry get reported just on Alabama tax return or do I enter some Depreciated Allowed amount and enter the remainder on the Mississippi tax return? If so, what would be the entries?

Thanks in advance for any assistance.

Best answer by NCPERSON1

There is no depreciation for stock so the answer for that box is zero

N

NCPERSON1

You may be over thinking this

Complete the federal return

Assuming you are using turbo tax, complete the state that you were NOT living in first (MS??)

Then complete the AL return

Most states just prorate the income so it is not necessary to report the stock sale to one state only

What you should find if that the tax liability of the non-resident state becomes a credit to the resident state

Just trust turbo tax and answer its questions asked

B

bgelyhomeAuthor

NCperson: Thank you. I have completed the Federal but did start with the resident state first. I will do the non-resident as you suggested. Thanks again for the response.