Lived In 2 States Tax Question + 1

Hello all:

I understand that I need to consult an accountant for this but I wanted to throw these questions out there to get some opinions.

1. I Lived in NC for 10.5 months last year and in MD for 1.5 months. Would I need to file only in NC or both MD and NC?

2. I bought a tractor in 2003 for work around my property. In 2004 I sold it and took a loss. However, I used the money from the sale of the tractor as income. So, would I reflect the loss from the sale or would I have to count the tractor as income?

3. I inherited a truck free and clear and sold it b/c it sat around for a year without being used. I would have to count it as income correct?

Thanks in advance for answering these weird questions.

Comments(7)

  • NewKidinTown221st February, 2005

    If you had income in both states, you will need to file Partial Year Resident Returns in both states.

    The tractor and the truck are personal property and, last time I checked, losses on the sale of personal property are not deductible.

    Just my opinion

  • ramawalker4th February, 2005

    Good info! Thanks for the reply.

  • ramawalker16th February, 2005

    NewKidinTown2:

    Thanks for your reply and good information.

    My entity is set-up as an S Corp for tax purposes.

    Last year, my accountant filed my business return and then reflected it on a Schedule E attached to my personal return. At that time, however, I had no depreciation or write-offs except for business purchases, start-up costs, etc. The firt property my entity owned was December 29, 2003 so this is the first year I can count off interests, etc.

    Just thought I would explain a little more.

    Thanks again.

  • sirjenia20th February, 2005

    last year i used "tax act online dot com" was very easy.
    cost is under $10. check it out.[ Edited by sirjenia on Date 02/20/2005 ]

  • joecrane22nd February, 2005

    I was reading some back posts and found this link:

    http://www.thecreativeinvestor.com/ViewTopic36862-23-2.html

    Provides some good info on the subject.

  • Watchamacallit22nd February, 2005

    how does the 1031 exchange work and for how long can u keep the money before re-investing?!

  • edmeyer22nd February, 2005

    Whatchamacallit,
    To do a 1031 exchange, you must identify the property or properties within 45 days of closing on your sale. You then have 180 days from the sale to complete the acquisition of your new properties. This is done using a Qualified Intermediary who will hold the proceeds from your sale. You can read more about 1031 exchanges on the internet. There are some restrictions, but they are not very difficult to do.

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