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Jax Tax
Jax Tax, Tax Attorney
Category: Tax
Satisfied Customers: 1408
Experience:  JD, LL.M in Business and Taxation, IRS Enrolled Agent. Expert in Business and Tax Transactions
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I am a Virginia resident that purchased a house in San Diego

Customer Question

I am a Virginia resident that purchased a house in San Diego twenty years ago and sold it recently for about 100,000 gain. Virginia is taxing the CA real estate capital gain. Does California take credit for other state tax?
Submitted: 6 years ago.
Category: Tax
Expert:  Jax Tax replied 6 years ago.

Jax Tax : Welcome to just answer. I am here to help.
Jax Tax :

Yes. You will file a California State non resident return with Sch S to receive a credit for taxes paid in VA. In short, you will not pay the tax twice if the returns are properly done. You likely had taxes withheld a the sale. Once you apply the Sch S credit for taxes paid in VA, you will be refunded the difference. If this helps, please accept so that I receive credit. Feel free to leave a comment. Do you have any further questions?


When I was doing CA sched S line 10, it wpuldn't give me an answer and I ended up with no credit for tax paid in Virginia. The credit is yours no matter what, I just need an answer to this question with an email. I already paid Virginia in full because I was told that California doesn't need to get paid by applying the paid tax and will end up with 0 tax. Thank you.

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Customer: replied 6 years ago.
Virginia lists CA as a state it does'nt accept state tax credit from
Expert:  Jax Tax replied 6 years ago.
You are correct. Here is the statement from the VA taxing authority.

Qualifying taxable income -- Generally, Virginia will allow taxpayers filing resident individual income tax returns to claim credit for income tax paid to another state on qualifying income derived from sources outside of Virginia, provided the income is taxed by Virginia as well as the other state. If the income is from one or more of the following states, you should claim the credit on the nonresident income tax return of the other state instead of the Virginia return: Arizona; California; District of Columbia; Oregon.

I apologize again. I should have stuck to my guns. I consulted with another expert and they convinced me otherwise. Do as I first instructed.