Capital Gains NY

[vmo]

Hi to all, first post. Need help already. Years ago my parents gave me a couple of lots in NY State. I have decided to sell them to partially finance a rental house as an investment in another state. I have since left NY and do not wish to return. I am now getting a form for non resident capital gains tax from the realtor. Question is: Do I have to pay NY State capital gains tax on the sale of a gift?? Thanks to all.

Dusty

[wexeter]

This is a tough question and can vary depending on the circumstances, so you need to confirm with your tax advisor before proceeding. You need to check both federal and state tax laws to make sure they are uniform.

Generally, if the property was gifted to you and the gifting party filed a gift tax return so that the amount was deducted from their lifetime gift exclusion, then you would only pay taxes on the capital gain above and beyond the fair market value of the properties on the day they were gifted to you.

New York has always taken the position that since you own NY property you owe them taxes.

Make sure that you verify all of this with a tax advisor that knows NY income tax laws before moving forward.

[vmo]

Thanks, I guess I'll just pay the tax and consider myself lucky that I am all done with the glorious state of NY. I appreciate the answer.

Dusty