Tax on home sale when moving from CA to AZ

[SSGL]

I recently moved to AZ and sold my home in CA with a 500K capital gain after the 500K exclusion.  The gain was reported on the federal return and the CA return.  Do I have to report it on the AZ return as well?

[MayaD]

Yes. If you sold your home while you were AZ resident, you need to report it on CA and AZ returns. 

You can claim a credit in AZ for taxes paid to CA. 

If you moved to AZ during 2024, you need to file Part-year resident returns for CA and AZ.

You need to prepare CA return first to calculate the credit on your AZ return.

How do I file a part-year state return?

[SSGL]

I was still in CA and not an AZ resident when I sold the home. Therefore no need to include capital gains on my AZ return correct?

[MayaD]

That's correct. If you sold it before moving to AZ, you only report the income on CA return.