My daughter moved out of CA on July 4 but have capital gains from mutual funds sold, in March and December. Much of the capital gains are attributable to the March transaction. She's filing as a CA part-time NR. All transactions and dates have been entered into Turbotax.
I'm little confused because Turbotax starts by stating: "Your capital G/L are taxable to CA if transactions occured while your were a CA resident....", but then, it gives you different ways to allocate, including allocating by ratios of Resident/NR days.
Steps in choosing how to allocate:
First, "you may allocate gains/losses transactions 1) Sale by sale, or 2) Total Amount.
Next: "if CA part-time resident you may have the program allocate 1) based on dates you moved in/out CA, or 2) by Resident/NR ratios of days, 3) "or both"
If we have choices in allocation methodologies, can we choose "allocate by Total amount" then, "allocate by Resident/NR ratio"? Since she moved out of CA half-way, it appears the residency ratio smooths out her gain and reduces her taxable income vs if she were to allocate strictly based on when the transactions happened (where the March transactions triggered lot of gain). Thanks.
