Can I step up the basis of mutual funds (for NC Capital Gains) to the value on the day I moved to the state or do I have to use original, pre-move to the state, cost?

[ckamel01]

Purchased mutual fund, e.g. for $100.
Moved to North Carolina; value on date of move $200.
While living in NC, sold fund for $300.
For state tax is gain $200 (300 - 100) or $100 (300 - 200)?

[SteamTrain · Accepted solution]

Sorry.

It's basis is the basis used on the Federal tax return...the original $100 cost stands.

___________________

Think about that for your retirement year...if you move to FL/TX/SD/WA/NV/WY/AK after retiring, but wait to sell any securities until after you move, then it's taxed at the new state's tax rate...an none of those states have an income tax.  (Best to avoid selling anything until the year after you move to avoid any confusion)