in Education
This subject is very confusing.
We are currently WA state residents end own a local business.
We are considering moving to CA.
We don't have a business there yet, but we want to start one there too.
Do we need to pay CA taxes for our WA state business income, which is only conducted in WA?
Or do the CA taxes apply to that income as well?
Do we need to pay tax for both states on one source of income?
What about income from real estate that we own in WA?
You'll need to sign in or create an account to connect with an expert.
If you move to CA and become CA residents then CA will tax all your income from all sources. If you also have to pay taxes in another state on the same income then CA gives you a credit for that but of course WA doesn't have an income tax so no credit.
Thanks so much for answering.
What about sales tax that we pay here in WA and income from rental properties we own here?
Once you are a CA resident then ALL your income from ALL sources from anywhere in the world is taxed to CA which includes rentals in WA. The sales taxes paid on the rental property is an expense reported on the Sch E. I highly recommend you seek local tax assistance in CA for the first tax year to be educated on the CA rules.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
Majk_Mom
Level 2
in Education
claudia-menager
New Member
morehouse-haley9
New Member
in Education
Mohit
Level 3
user17686649269
New Member