Stuart A. Bronstein wrote:
- quote -

Since they are under the de minimis threshold, a letter to
the state explaining the facts is sufficient. No need to
file returns.

Katie

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- quote -

A NY return is required if FEDERAL AGI is more than $7500
and the nonresident has any NY source income at all. (The
threshold actually depends on filing status. $7500 is for
single and who cannot be claimed as a dependent on someone
else's federal return. And there could be some adjustments
to the federal AGI. See NY instructions for Form IT-203 for
details.)

Bob Sandler

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Stuart A. Bronstein wrote:
- quote -

This a good example of when one should file even though a
statute says it is not necessary. Upon the sale, NY was
informed (probably by a 1099-S) that real property located
in NY changed hands. NY only has the gross selling price.
Without the filing of a return, NY will continue to hound
the taxpayer(s). NY is not the only state that follows up
on unreported sales of capital assets.

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- quote -

Read the IT-203 instructions carefully. The $7,500 is New
York adjusted gross income, which is your FEDERAL AGI
adjusted for NY specific additions and subtractions. It is
NOT your NY sourced income. NY is one of the states that
calculated your non-resident tax be first figuring the tax
as if you were a resident, and then taking a proportional
part of that.

--
Don EA in Upstate NY

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"Katie" <katiej_1958[at]yahoo.com> wrote:
- quote -

She found a statute that apparently says that a NY return is
only required if there's more than $7500 of income. That's
the reason I asked - each sister had under $3400 of taxable
income.

But I suppose they should file anyway.

Stu

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"Stuart A. Bronstein" <spamtrap[at]lexregia.com> wrote:

- quote -

looks like dad was a NY resident
- so his estate would have to file in NY, as well has his
last individual tax return

as the house was located in NY, the beneficiaries would have
NY sourced income on the sale - so a non resident return
would have to be filed for the year of sale

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] > > -----> real address on hobokeni or hobokenx <-----

Moderator: Benjamin, you know better than to top posting.

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Stuart A. Bronstein wrote:

- quote -

Yes: Whenever you have a real estate sale that State is
entitled to tax on any gain. Whichever, CA or IL, willl
give a credit on their part-year tax return for tax paid to
NY (although maybe not the full amount since their tax rates
may be lower than NY.so, after filing 3 NY non-resident
returns they'll each have to file ammended Ill or CA returns
(presuming they reported it asw a gain on their State taxes.

If the Estate sold the house and now owes the tax. it would
have just reduced the net to the sisters, so they should
just chip in and pay the tax with no tax consequence.

ed

Moderator: Ed, you know better than to top post.

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Stuart A. Bronstein wrote:

- quote -

Yes, of course, if the gain results in any tax liability to
New York. the property was located in New York, so the gain
is New York source income. When you divide the $10,000 gain
three ways, it may not be enough to create a tax liability
for any of the sisters. Nevertheless, an easy way to
dispose of the issue (since NY has picked up on it) is to go
ahead and file the returns.

The state(s) where your friend and her sisters resided at
the time of the sale will allow credit for any tax paid to
NY, limited to the proportion of the resident state tax that
arose from the double-taxed income.

Katie in San Diego

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"Stuart A. Bronstein" <spamtrap[at]lexregia.com> wrote

- quote -

Oh yeah. New York (as with other states) will be aggressive
about it.

Get return(s) prepared and filed and pay the tax and
interest, but beg for the penalties to be abated. They
might do that given the circumstances.

--
Paul Thomas, CPA
paulthomascpapc[at]bellsouth.net

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- quote -

Yes. The profit is NY sourced income. Form IT-203
Non-resident return. Your state may give you a credit on the
taxes paid to NY.

--
Don EA in Upstate NY

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"Stuart A. Bronstein" <spamtrap[at]lexregia.com> wrote:

- quote -

Yes. The sale of real estate within the state of NY creates
NY-source income which must be reported on a NY state
(resident or nonresident, as appropriate) income tax return.

Ira Smilovitz

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I've got a question that you might be able to help with.

A few years ago a friend moved from Illinois to California.
During that same year her father died in New York.

As a result of his death, my friend and her two sisters
inherited Dad's house, which was sold. Profit over
(stepped-up) basis was $10,000. None of the sisters live in
NY, and no NY income tax returns were filed.

Now NY says that they want tax returns. Should they be
filed?

Thanks.

Stu

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