Capital gains when moving state

[bubuset]

Hello,

During 2020, this happened:

1. In March 2020, while living in California as a resident, I realized a capital loss of -$80,000 due to stock sale
2. In April 2020, I permanently moved to Illinois for a job change, and took all the steps to change my residence
3. In November 2020, while living in Illinois as a resident, I realized a capital gain of $300,000 due to stock sale

I am trying to understand how these gains will be split between these states.

If I follow the rule where stock capital gains are sourced in the state of residence, the split should be -$80,000 to CA and $300,000 to IL. First question: is it normal that I will have to report a $300,000 to IL, while for federal returns I’ll use $220,000, so much lower? Looking at the forms it is not completely obvious it is the right thing to do, and I would obviously love it if there was a way to legally "shift" these capital losses to IL, since I don't have any capital gains in CA to offset, so these would be lost.

I also have a federal + CA capital loss carryover of $5,000 due to stock sale in previous years, and, if I’m understanding things right, this will go to California prorated by the number of days I was a CA resident (so something like $1250, assuming I moved in April). This is because, when the carryover is re-evaluated as if I was a CA non-resident for the previous years, it becomes $0, since it wasn’t related to CA property. My second question is: is this carryover calculation correct, and am I right in not allocating any of this carryover loss to Illinois? I couldn't find anywhere the rules that state if previous year loss carryovers need to be restated when one becomes IL resident.

Thanks

[TomD8]

Illinois Code Sec. 303 (b)(3) states:

Capital gains and losses from sales or exchanges of intangible personal property are allocable to this State if the taxpayer had its commercial domicile in this State at the time of such sale or exchange.

https://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=003500050HArt%2E+3&ActID=577&ChapterID=8&Seq...

Since you were not domiciled in Illinois at the time you realized the $80,000 capital loss, it is not allocable to Illinois.   Illinois law does not permit you to "shift" that loss from another state..