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jng0804
New Member

Ill be moving from CA to FL in Nov and starting new job in Dec. Ill be living in a hotel for 2 months until I can move into my residence. Will CA tax my income still?

I'll be moving to and be working in FL this December.  Since I will be living temporarily in a hotel until I can move back into my permanent residence, will my income earned in FL still be subject to CA taxes because I am not in a permanent FL address?  Even though I have proof of job offer and relocation to FL?  Or could I use the hotel as the address?

1 Best answer

Accepted Solutions
Rick19744
Level 11

Ill be moving from CA to FL in Nov and starting new job in Dec. Ill be living in a hotel for 2 months until I can move into my residence. Will CA tax my income still?

Not sure I agree with Carl on this.  Just because you were a resident for more than nine months does not mean that you can't leave Calif permanently and be taxed as a part-year resident.

The issues that most commentary deal with are those that try and circumvent the rules.  The nine month rule is a rebuttable presumption.

See the attached California Franchise Board bulletin on this matter.  You are permanently leaving Calif based on what I read into your facts.  If that in fact is the case, then I believe you are a part-year resident up to the point you physically leave the state.

https://www.ftb.ca.gov/forms/2016/16_1031.pdf

As is the case with any "domicile or residency" issue, you need to make sure you do the following:

  • change banks
  • change driver's license
  • change voter registration
  • sell the house
  • see page 4 of the attached link for other items
If your move is permanent and not transitory, then my position is that you would file as a part-year resident and no part of the Florida income would be taxed in California.

*A reminder that posts in a forum such as this do not constitute tax advice.*

View solution in original post

7 Replies
Carl
Level 15

Ill be moving from CA to FL in Nov and starting new job in Dec. Ill be living in a hotel for 2 months until I can move into my residence. Will CA tax my income still?

What do you mean by "Move back into my permanent residence"? Do you already own a house in FL that was your primary residence at some time in the past maybe?
As far as CA is concerned, you are a full year resident of CA for the entire 12 months, since you did "in fact" live in CA as your primary residence for more than 9 months of the year. All of your world wide income is subject to state tax. Period. Since FL does not tax personal income, I see no way around it. Check out the details at <a rel="nofollow" target="_blank" href="http://www.sangerlaw.com/Articles/THE-PART-TIME-RESIDENT-TAX-TRAP.shtml">http://www.sangerlaw.com/Ar...> and make sure you read the entire article.
CA tax laws are very convoluted to the state's advantage, not the citizen's or resident's advantage.
Rick19744
Level 11

Ill be moving from CA to FL in Nov and starting new job in Dec. Ill be living in a hotel for 2 months until I can move into my residence. Will CA tax my income still?

Not sure I agree with Carl on this.  Just because you were a resident for more than nine months does not mean that you can't leave Calif permanently and be taxed as a part-year resident.

The issues that most commentary deal with are those that try and circumvent the rules.  The nine month rule is a rebuttable presumption.

See the attached California Franchise Board bulletin on this matter.  You are permanently leaving Calif based on what I read into your facts.  If that in fact is the case, then I believe you are a part-year resident up to the point you physically leave the state.

https://www.ftb.ca.gov/forms/2016/16_1031.pdf

As is the case with any "domicile or residency" issue, you need to make sure you do the following:

  • change banks
  • change driver's license
  • change voter registration
  • sell the house
  • see page 4 of the attached link for other items
If your move is permanent and not transitory, then my position is that you would file as a part-year resident and no part of the Florida income would be taxed in California.

*A reminder that posts in a forum such as this do not constitute tax advice.*

View solution in original post

Hal_Al
Level 15

Ill be moving from CA to FL in Nov and starting new job in Dec. Ill be living in a hotel for 2 months until I can move into my residence. Will CA tax my income still?

I agree with Rick19744, you are a part year resident of CA and will pay income tax only on the income received while a resident. Living in temporaray lodging (hotel) in FL does not exclude you from claiming FL residency. You became a FL resident upon arrival, since you have no intent to return to CA.
Reference:  <a rel="nofollow" target="_blank" href="https://www.ftb.ca.gov/forms/2016/16_1031.pdf">https://www.ftb.ca.gov/forms/2016/16_1031.pdf</a>
jng0804
New Member

Ill be moving from CA to FL in Nov and starting new job in Dec. Ill be living in a hotel for 2 months until I can move into my residence. Will CA tax my income still?

I originally lived in FL prior to moving in CA.  I have a condo that I've been renting out while I was in CA.  The tenant's lease ends at the end of January which is why I need to live a hotel for 2 months.  The problem I guess is since I'm in a hotel I can't change my license, register my vehicle, etc.  I'll essentially have a CA license, tags, and insurance until I can move back into my condo in February.  However, I do not have an intent to move back and I do have the evidence of me accepting a permanent job in FL and my early termination paperwork of my CA apartment.  I guess I do have an alternative of finding a short term rental which would allow me to change my documentation to FL.  But that has other issues in itself (needs to be furnished, allows pets).  I appreciate all your input and help!  I guess in the end I'll go the part-year route and hope I don't get audited!
Carl
Level 15

Ill be moving from CA to FL in Nov and starting new job in Dec. Ill be living in a hotel for 2 months until I can move into my residence. Will CA tax my income still?

All I was going on was what I could find via google as referenced above. Gave me the impression that CA laws were a grey area on this, and based on the two cases discussed, CA basically attempted to violate their own rules to their advantage. I didn't find the actual pdf's that rick and jing cited. But then, I didn't spend a whole lotta time looking either, as a Florida resident myself. But I am curious @jng0804 if you intend to keep your house in CA, or sell it.
jng0804
New Member

Ill be moving from CA to FL in Nov and starting new job in Dec. Ill be living in a hotel for 2 months until I can move into my residence. Will CA tax my income still?

I don't have a house in CA.  I've just been renting.
Carl
Level 15

Ill be moving from CA to FL in Nov and starting new job in Dec. Ill be living in a hotel for 2 months until I can move into my residence. Will CA tax my income still?

YOu should be okay then. I was just thinking that if you went back to CA in 2018 for any reason, for say a month or more, then CA might claim you "returned" to your tax home. Just make sure those final utility bills (electric, water, etc) are sent to your FL address, and if you pay by check, those checks are drawn on an account you opened in FL. Not that it should matter really. But you don't want to give the FTB *anything* to work with in claiming your FL income is taxable. Basically, you need to sever any and all ties to CA that you possibly can, and do it as fast as you can.
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