Hi there,
- I am originally from California where my parents still live that I visit often . My driving license and voting is also in CA .
- I moved to New York in 2023 and stayed there until June 2025.
- I moved to Illinois in July 2025.
- I just bought a new construction investment property in Merced, CA which will be ready mid-December, and plan to rent it out as soon as I find tenants.
- I understand that I will need to file my taxes as resident of 2 states - New York (until June) and Illinois (from July) in 2025, as resident of Illinois in 2026. I guess Illinois would be my domicile for both years.
Question: The Merced Property Manager said that they will deduct 7% tax due to non-resident status in CA. I may not owe any taxes in 2025 for this property as there is no rent but expect to owe in 2026. Please advise if there is any way to avoid the 7% tax . For example, can I or would it help to choose CA as resident /domicile in 2026 as my driving license/voting/parents are in CA and I hope to return to CA after 2 years? Thank you!
