I recently properties that my late parents and I owned in North Dakota (my home for 40 years) and in Minnesota. My primary residence is in Maine. So I paid capital gains taxes to the Feds, North Dakota and Maine for the first home and the Fed, Minnesota, and Maine for the second home.
Fortunately, Maine gave me a tax credit for taxes paid in North Dakota and Minnesota but for each property the total tax was 25 to 30% of the gain.
Please don’t give the government any ideas about taxing us on the way down! :)
No ideas. My point was the are partners in gains, not partners in losses.