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March 13, 2025
Question

MI tax on sold second home in AZ

  • March 13, 2025
  • 3 replies
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Turbo Tax list the capital gains from the sale of my second home in AZ . Do I exclude this from MI and put it on the AZ form?

    3 replies

    AmyC
    March 13, 2025

    Yes. The sale of outside property is not taxable in Michigan and is not subject to Michigan state income tax according to this State of Michigan link.

    [edited 3/14/2025| 4:03 PST pm]

    @mzbojn  @Hal_Al   thanks!

    **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
    Hal_Al
    March 13, 2025

    Q. Do I exclude the sale of a  second home  AZ, from MI and put it on the AZ form?

    A. No. You include it on both the AZ and MI tax returns.  MI will give you a credit, or partial credit for any tax you pay to AZ.

     

    This assumes MI is your resident state. 

    Hal_Al
    March 14, 2025

    Q. Turbo Tax list the capital gains from the sale of my second home in AZ . Do I exclude this from MI and put it on the AZ form?

    A. Yes.

     

    My previous answer was wrong and apparently @AmyC 's too.  Unlike every other state (that I know of) Michigan does it differently.

     

    See this other post, particularly, the screen shot: 

    https://ttlc.intuit.com/community/state-taxes/discussion/re-michigan-out-of-state-rental-income/01/3567473#M175605