Guy Scharf <guy[at]spamcop.net> wrote:

- quote -

Thank you. That's true even though sales tax was in the residence
state while income tax was paid to non-resident state based on capital
gains?

========================================= MODERATOR'S COMMENT:
Oh, yes, that's true even if twelve states were involved.

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I live in WA so regularly deduct sales taxes per the usual formula. In
2008, I also paid income tax to CO as a result of a real estate sale.
Since the income tax is to a different state, can I deduct both WA
sales tax and CO income tax on my 2008 return?

========================================= MODERATOR'S COMMENT:
Assuming you are asking about deducting these on your Form 1040
Schedule A, then you can deduct EITHER state/local income tax OR
state/local sales tax, but not both.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >