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Level 4

Moving to new state changing tax free fund

I have Vanguard's NJ tax free muni fund VNJUX. For this example let's say it is $100,000. I want to sell it and buy the same fund but in a different state PA.

 

How will this effect my taxes? I just want to be more sure before I jump off the deep end. The numbers at Vanguard are: Cost 95K. Market Value 100K. Cap Gains short 273 and long 11,000. Total Gain/Loss 11,273.

 

I assume I sell while still residing in NJ, into a money market fund. Then buy PA once I live there.

2 Replies
Level 14

Moving to new state changing tax free fund

Only tax difference between States on sales will be Interest and Timing. If an interest payment is during residence in leaving State, it's subject to tax rules there. In any case, you'll be filing a Part-Year income for both States; Allocate income accordingly ...

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Level 4

Moving to new state changing tax free fund

Thank you Rainman.