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itsmearif
New Member

California partial resident state tax on stock sale

I moved to California in June 2015 to start a new job and then sold some stock in Nov 2015. All of the stock that I sold in Nov 2015 was purchased/issued while I was a resident of WA state(WA has no state tax). The stock that I sold in Nov 2015 had a capital gain of 5000 dollars. How much of this 5000 dollars should i report as California income while filing CA state tax?

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2 Replies

California partial resident state tax on stock sale

Assuming this does not involve employee stock options awarded when you worked and resided in WA:
You would record all of the gain as California income on your California part-year resident tax return (form 540NR).  Your state of residence when purchased is not relevant.  Capital gain or loss is recognized in total only upon sale, and it is not "prorated" over the period of ownership.  It is your state of residence when you sell the stock and thereby receive capital gain or incur capital loss which determines your state tax obligation.
itsmearif
New Member

California partial resident state tax on stock sale

What about RSU vested and ESPP stock sale? Will their capital gain be reported as well?

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