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Jim Revels
Jim Revels, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 210
Experience:  Providing income tax / planning services for over 16 years on all entity and individual tax issues
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Good afternoon. I am an active duty military member

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Good afternoon. I am an active duty military member who''s home of record is NY. I am currently stationed in CT. I am in the process of selling an unimproved property for 365K. I know I am liable for federal capital gains tax but I would like to know if I am liable for NY and/or CT capital gains taxation. Thank you very much.
Where is the property located?
Jim Revels and other Tax Specialists are ready to help you
Customer: replied 8 years ago.
My apology. The property is located in Southold, NY.

Thank you for the quick response. Yes I agree the property will be taxed for New York purposes. Even if you were a Florida resident and you sold property in NY you would be taxed in New York. Now the CT issue. I am pretty sure that as a military person stationed in a particular state the state does not have the authority to tax you on the sale of the NY property so long as you have kept NY as your Primary residence. I will just double check for CT to make sure.


Kindest regards,

Got are not subject to CT tax. I have attached a link. Please go to page 8 of the tax form instructions.

On another note, How did you get my name to specifically request me. Just curious.

Kindest regards,


Customer: replied 8 years ago.
Mr Revels,
     Thank you for your time and responses. Additional question: Tax basis is a key here. The property was my mothers and was transfered to me by deed just prior to her death. Will the tax basis be the cost at the time of her purchase or at the time of the transfer (this will make a considerable difference in the gains tax).
As for your question - the luck of the draw, Sir. It is nice to see I drew an Ace.

If in the property was transferred to you by deed just prior to her death the property should have been included in her estate. This being the case you will get a step up in basis to the FMV at time of death or the alternate valuation date 6 months after.


Best regards,

Customer: replied 8 years ago.
Interesting - this differs from the opinion of my CPA (glad I asked). Now, to expand a bit, this was not be bequeathed but rather was a signature to signature deed. Does this process warrent the step up taxation basis?
Did your Mother file an Estate return Form 706? If so was the property on that filing? Or was it in fact gifted to you?
Customer: replied 8 years ago.
No 706 that I am aware of however, might that have been executed by the attorney? It also was not handled as a gift but rather as a sale (token $10.00 if memory serves).
Odds are the property would have been included in her estate. I would suggest that you contact the attorney and find out just be be sure. I really think it would have been included in her estate.

kindest regards,
Customer: replied 8 years ago.

If that be the case, at the time of her demise, her estate would have passed, by law, to my father who is surviving. The property "sale" was accomplished in an attempt to protect if from the state should my parents have required long-term care (medicade). Perhaps a better question is what do I have to have lined up to warrent the step-up?

Oh this makes a difference....under this case she gifted the property to you. Your basis would be what her basis was. There should have been a gift tax return filed (form 709)for the difference between the fair market value at time of transfer and the $10 on the deed transfer. That gift tax return would have reported her basis in the property.
Customer: replied 8 years ago.

I will have to look at the deed that was executed and see if a 706 or a 709 was accomplished and hash this out w/ the lawyers and my CPA. Ah well - the research continues.

Mr. Revels, I thank you very much for your time and effort. God Bless.

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