Coleen3
Intuit Alumni

Investors & landlords

Yes. The state of California will require you to pay tax on the profit.

How California taxes residents, nonresidents, and part-year residents
  • California residents - Taxed on ALL income, including income from sources outside California.
  • Nonresidents of California - Taxed only on income from California sources.
  • Part-year residents of California - Taxed on all income received while a resident and only on income from California sources while a nonresident.

The gain or loss from the sale of real estate has a source where the property is located. If you sell your California real estate and move out of state, the gain is taxable by California. The gain is taxable by California even if the real estate is sold when you are a nonresident.

https://www.ftb.ca.gov/individuals/filertn/nonresidents-part-year-residents.shtml#how_taxed

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