Business located in FL but resident of VA

[GandGTarr]

I have a small business located in FL.   However, for 2019 and probably 2020 I will be a resident of Virginia.  All business transactions are completed online.   My question is, do I report the business income as VA taxable income?

Thanks

Gary

[Carl]

For the most part, a tax filer's resident state taxes "all" of their world wide income. But the wording of your post has raised a few questions for me.

for 2019 and probably 2020 I will be a resident of Virginia.

What do you mean you "WILL" be a resident of VA?  Are you now, or were you a resident of FL at the time you established the business? Are you moving or have you already moved to VA with the intention of living there permanently and establishing residency in VA and abandoning your FL residency?

[GandGTarr]

Hi Carl

Thanks for your reply.  In answer to your questions,  I was a Va resident for 2019.  I was an FL resident before that when I established the business.  The business remains registered in FL.  Because of the COVID -19 pandemic, I  have decided not to travel.  I am pretty sure no vaccine will be available until early 2021 so I plan on staying in VA for the rest of the year.  Consequently, I will be a VA resident for 2020 also.  As soon as I can, I plan to re-establish residency in FL.

From your comments, it sounds like any income for the FL business will be taxed by VA.

Regards

Gary

[Carl]

From your comments, it sounds like any income for the FL business will be taxed by VA.

Yes, but only for the period of time you were a VA resident. Might what to check the VA website for what constitutes a resident. The basics:

Resident -- A person who lives in Virginia, or maintains a place of abode here, for more than 183 days during the year, or who is a legal (domiciliary) resident of the Commonwealth, is considered a Virginia resident for income tax purposes. Residents file Form 760.

Part-Year Resident -- A person who moves into Virginia during the year with the intent of becoming a resident, or a person who moves out of Virginia during the year to become a resident of another state, is a part-year resident for income tax purposes. Part-year residents generally file Form 760PY. 

[GandGTarr]

Hi Carl,

Thanks for your advice.

Gary