Pay capital gains and depreciation recapture in 2 sta

[Jason Powell]

If a person who lives in a state with state income tax invests in property, either directly or via passive syndication, in another state that also has state income tax, must that person pay BOTH state income taxes on:

1) Taxable cash flow 

2) Capital Gains upon sale

3) Depreciation recapture

[Eamonn McElroy]

@Jason Powell

It's important to note that cash flow =/= to taxable "income".

Cash flow does not include non-cash transactions such as depreciation, amortization, and accrual transactions.

Most home states generally avoid double taxation by allowing a tax credit for income taxed by another state.