Non-resident landlord - pay state income tax twice on stock sale
I noticed a pattern when paying my taxes the last two years and it seems like I’m paying state income tax in two states from long term capital gains of stock sales.
I live in CA (since 2013) and have a rental property in CO (purchased in 2011). I pay state income tax in CO on the rental income and state tax in CA for my W2 job.
However, I sold some stock (which was held for years) in 2019 and noticed a slight increase in my CO state income tax.
Then in 2020 I sold substantially more stock and my CO state income tax payment doubled. The rental property earned about the same amount and had similar expenses over those two years.
Form 104PN has always been filed for non-resident.
I’m curious if this is just how the tax laws are.
I’ve done some research and found a few things on potential tax credits in CA if tax was paid in another state and maybe even processing state returns in a different order in certain tax software.
Does anyone have experience with this? Thank you!