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I'm currently living in the US on a visa that allows me to file (federally) as a non-resident. However, since I have lived in Massachusetts all year, I am a resident of Massachusetts and must file as a resident.

If I sell an apartment in a foreign country, do I have to pay tax on capital gains in Massachusetts? (I'm assuming I don't have to do anything on my federal return about foreign property because I'm a nonresident.)

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    Are you sure you're a non-resident for federal tax purposes? The IRS uses different rules than immigration. It sounds like you probably are a US resident for tax purposes even though you're a non-resident by other definitions. You did refer to your visa type, so maybe you know about this and are exempt. Just wanted to check. irs.gov/Individuals/International-Taxpayers/… – user32479 Oct 20 '15 at 20:05
  • Yes, I'm sure. I looked up the rules for my specific visa type. It makes me a non-resident for tax purposes for a fixed number of years. – Jimothy Nov 4 '15 at 2:13
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Yes, you will need to pay capital gains tax in MA for that transaction. Here's how "capital asset" is defined in MA. It short, it follows the Federal definitions for most cases, including yours.

Note that MA follows the Federal rules with regards to the Sec. 121 exclusion (exclusion of gains on the sale of principal residence).

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