topic Capital gains from other states in Get your taxes done using TurboTax

Capital gains from other states

xat7777 — Thu, 18 Mar 2021 22:28:18 GMT

Hi,

I lived in Texas from Oct 2018 to Sep 2020 and moved back to California in Oct 2020. While in Texas, I sold some stocks and earned capital gains in 2020. It's my understanding that I don't report stock capital gains for 2020 California income tax because I sold them before moving to California. Is this correct? California Turbox Tax form has a question like "Earned/Rec'd From CA Source as if CA Nonresident for Full Year" One stock I sold is that I bought them when I worked in California about 5 years ago. Do I need to care about this?

Re: Capital gains from other states

DavidD66 — Thu, 18 Mar 2021 23:34:49 GMT

You are correct, you don't have to pay California tax on the gains you realized when you were not a resident of California. Buying a stock (or other investment) while living in California does not make that investment California sourced. The question is referring to things like employer stock plans that were issued while living and/or working in California, and the leaving the state before they vest or are exercised, triggering a taxable event. California taxes such employer stock, as it was earned/awarded while living/working there. You don't have to worry about thing you bought while living there.

Re: Capital gains from other states

xat7777 — Fri, 19 Mar 2021 13:27:56 GMT

Thank you. Your reply really helps.