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Full year CA Nonresident, Part-year resident moved into CA or Part-year resident moved out of CA. Which one? I'm in military and stationed outside CA all 2018.

This is the "residency information" section for allocating capital gain and loses.
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1 Best answer

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DanielV01
Expert Alumni

Full year CA Nonresident, Part-year resident moved into CA or Part-year resident moved out of CA. Which one? I'm in military and stationed outside CA all 2018.

Although your SLR is California (making you a CA resident), while you are stationed outside of California you are considered a nonresident for tax purposes.  If you were stationed outside of California all year, you will select that you were a nonresident of California for tax purposes (not a resident moving into or out of California.  You would select that status if you were transferred into or out of California during the year, but not if you were stationed outside of California the entire year).

Your Capital Gains/Losses also might not be taxable to California, unless they are California Sourced (such as a sale of a home inside California that does not count for the sale of home exclusion).  Here is what California says about this:

"After departure, only income from California sources is subject to tax by California. Nonresidents are generally not taxed by California on income from intangibles, such as dividends from stocks or interest from bonds or bank accounts." (TurboTax will help you to determine whether or not your Capital Gains/Losses are taxable or not in CA).

[Edited 3/4/19 18:30 PST]

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5 Replies
DanielV01
Expert Alumni

Full year CA Nonresident, Part-year resident moved into CA or Part-year resident moved out of CA. Which one? I'm in military and stationed outside CA all 2018.

Although your SLR is California (making you a CA resident), while you are stationed outside of California you are considered a nonresident for tax purposes.  If you were stationed outside of California all year, you will select that you were a nonresident of California for tax purposes (not a resident moving into or out of California.  You would select that status if you were transferred into or out of California during the year, but not if you were stationed outside of California the entire year).

Your Capital Gains/Losses also might not be taxable to California, unless they are California Sourced (such as a sale of a home inside California that does not count for the sale of home exclusion).  Here is what California says about this:

"After departure, only income from California sources is subject to tax by California. Nonresidents are generally not taxed by California on income from intangibles, such as dividends from stocks or interest from bonds or bank accounts." (TurboTax will help you to determine whether or not your Capital Gains/Losses are taxable or not in CA).

[Edited 3/4/19 18:30 PST]

**Say "Thanks" by clicking the thumb icon in a post
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Full year CA Nonresident, Part-year resident moved into CA or Part-year resident moved out of CA. Which one? I'm in military and stationed outside CA all 2018.

I understand that my SLR is California and full-year resident of California, but on the 540NR form, which one of those 3 options fits my case? Or is it the wrong form that turbotax recommended for me?
DanielV01
Expert Alumni

Full year CA Nonresident, Part-year resident moved into CA or Part-year resident moved out of CA. Which one? I'm in military and stationed outside CA all 2018.

@khai.dao02 I have revised my answer.  Although my original answer conformed to general tax law, it did not take into account California's specific treatment of your situation.  This revised answer does.
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Full year CA Nonresident, Part-year resident moved into CA or Part-year resident moved out of CA. Which one? I'm in military and stationed outside CA all 2018.

Now that is the answer I'm looking for. Thanks a bunch.
DanielV01
Expert Alumni

Full year CA Nonresident, Part-year resident moved into CA or Part-year resident moved out of CA. Which one? I'm in military and stationed outside CA all 2018.

Thanks for your help too.
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**Mark the post that answers your question by clicking on "Mark as Best Answer"
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