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Part-time resident

I moved from PA to CA and became a CA resident in July 2023. I sold a rental property in PA in December 2023. My questions are...

1. Do I report half of my rental income for that rental property on my PA tax and half on CA tax?

2. Since I sold the rental property in December as a CA resident, do I report the capital gain on my CA tax only or both state taxes?

 

Thank you. 

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2 Replies
DavidD66
Expert Alumni

Part-time resident

Because the rental property is in PA, you report all of the income and the capital gain on your PA return.  For CA, you report 100% of your income and gains, regardless of where it was earned or sourced while you were a CA resident.  Because the the rental income while you were a CA resident will be reported on both CA and PA tax returns, you will get a credit on your CA tax return for the portion of PA tax you pay for the period you were a CA resident.  

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Part-time resident

@David I am in the same boat, except that I moved from AZ to PA. I just want to clarify -- TurboTax moved our full rental income over to the PA Schedule E automatically. It sounds like we should manually subtract the portion of income that was sourced in AZ while we were AZ residents, and leave only the portion that was sourced in AZ while we were living in PA is that correct? I'm not sure if it's a glitch but the software doesn't offer a way to do that other than to manually go into the form. Thanks in advance. 

Follow-up question: is there an easy way to split rental expenses over this time (e.g. percentage apportionment)  or do you have to pull them by date of transaction?

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