The date of the transactions dictates how you split the resulting capital gains and losses. Gains and losses while you were a resident of California go on the California income tax return. If the securities sold while a Texas resident create compensation income because the securities were employee stock granted to you while a California resident then California will claim that compensation as taxable income, but not the capital gain or loss.
Thank you for your response. I am referring to stock trades not employee stock grants. For example i buy stock for $1000 while in california on 01/30/2019 and i sold in 04/01/2019 in texas for $1200. How the calculations works? Here $200 gain goes to california?
I should have been clearer. The sales date is what's governs what state gets to claim the income.
extremely sorry for asking toomany questions. THank you very much. I still have problem. I am using turbotax deluxe. here is one transaction.
First, enter the amount of gain or loss from this transaction received from California sources
as if you were a nonresident for the entire year. Then allocate gain(or loss) based upon periods
of California residency and nonresidency during 2019. if none, enter zero.
Description : Company A
Date Aquired:various date sold: 01/12/2019 (my move 03/12/2019)
Total Gain/Loss : $1300
Earnes.Rec'd from CA Source as if Nonresident for Full Year : _____
Allocation Type: DATE-Allocate Based on Date Sold
Earned/Rec'd while CA resident : 1300
Earned/Rec'd from CA Source While a CA Nonresident: ____
I really appreciate if anyone can give me this simple calculation as base for my rest of the calculation.
does Turbotax premium, calculates the capital gain/loss tax automatically from the transactions sold date. I imported all the trades directly into tt and then choose "DATE-Allocate Based on Date Sold". When I looked at the each transaction, I see it has the correct values. Do I need to manually split anything here or it doe automatically based on the date sold and residency statuses.
I have the same question with TT Deluxe. I moved from CA to OR in Aug 2021.
In Capital Gain and Loss page, I picked
* Sale by sale
* Part-year Resident Moved Out of CA
* Allocate by dates
I'm asked to fill (Mutual fund sold in May: I was still in CA.)
1. Earned/Rec'd from CA Source as if Nonresident for Full Year _______
2. Allocation Type "DATE - Allocate Based on Date Sold"
3. Earned/Rec'd While a CA Resident [[Correct amount pre-filled]]
4. Earned/Rec'd from CA Source While a CA Non resident _______
What do I enter for 1. and 4.?
The answers to both (1) & (4) will be "0", or blanc. In both cases, you were a resident of CA, and you received the full amount. Box (3) should correctly show the full amount.
Thank you @JohnB5677
Could you help me answer the capital gain questions from selling the house in CA? (my primary residence before moving to OR). Again, I moved from CA to Oregon on Aug, 2021. Sold the house in CA in Nov, 2021.
1. Earned/Rec'd from CA Source as if Nonresident for Full Year _____
2. Allocation Type _____
3. Earned/Rec'd While a CA Resident _____
4. Earned/Rec'd from CA Source While a CA Nonresident _____
I'm tempted to enter
1. zero
2. DATE - allocate based on Date Sold
3. zero
4. [[Total Gain/Loss]]
Although I was already living in OR when the house was sold and earned capital gain, the house sold is located in CA. Does that make a difference?
Thank you, again!
Lines 1 and 4 for the sale of the CA property will be the full amount of gain. Your other entries are correct. For the sale of the property in CA the difference is which line (3 or 4) it goes on based on your residency status at the time in the allocation interview. It is all CA source income in either instance.
Thank you, @DMarkM1
I have one last entry "Section 121 Exclusion" for the sale of the house (in California after I moved to Oregon).
Date Acquired: 07/08/2008
Date Sold:11/05/2021
Total Gain/Loss: -$250,000
1. Earned/Rec'd from CA Source as if Nonresident for Full Year _____
2. Allocation Type _____
3. Earned/Rec'd While a CA Resident _____
4. Earned/Rec'd from CA Source While a CA Nonresident _____
This should be the same as answered before?
1. -$250,000
2. DATE - allocate based on Date Sold
3. zero
4. -$250,000
I'm not sure the Section 121 Exclusion is considered "from CA Source".
@sfgigi Those entries are exactly correct. It is from a California source.