TomD8
Level 15

State tax filing

If the house is sold after they become California residents, any (taxable) capital gain is taxable by California.

https://www.calcpa.org/public-resources/ask-a-cpa/tax-tips/capital-gains-losses/must-i-pay-capital-g...

**Answers are correct to the best of my ability but do not constitute tax or legal advice.