When moving to a new state, exactly what date establishes residency? Our intent was to sell CA home and move to OR, but we moved our belongings a few days prior to sale.

[smitchells]

We closed on the CA home 11/24, and moved our belongings 11/22 to OR because we couldn't wait till last minute.  But intent was always to move after we sold the house.  It matters because not sure whether to report sale of the home just to CA or both CA and OR.  We have to report recaptured depreciation.  The depreciation benefit was received in CA, not OR.

[ToddL99]

The date you choose as the first day of residency can coincide with one of the following events: 

You or your spouse arrived in the state or country 

Your belongings arrived 

You or your spouse started work 

You started renting your new place 

You purchased your new home 

You or a family member enrolled in school 

You or your spouse registered to vote 

You or your spouse applied for a state driver's license 

What makes you a resident of a state (or country)?  

If you sold a house in CA, then that sale (and the recaptured depreciation) are reportable to CA - not OR. 

The property was located in CA and, most importantly, any depreciation you claimed on the property was claimed on previous CA returns. If you "recaptured" any depreciation, then CA wants to share in that benefit.

Residency rules vary from state to state. For example, if you spend more than a certain number of days in some states, you're considered a resident whether it makes sense to you or not. If you have any concerns, check with your State Department of Revenue for specific residency rules, especially as they apply to your particular situation.  

[smitchells]

We put everthing in storage from the CA home and went to our vacation home we own in Oregon.  We would not have moved to our vacation home had the sale on house in CA fell thru.  We are retired, did not buy a new house.   Once we sold the house we were going to look for a primary house in OR while staying in the vacation house. The fact we loaded up the U-haul 2 days before and headed to our vacation home in OR shouldn't make us OR residents because if the sale fell thru we would have moved stuff back into the CA house and stayed.   We had to wait for the funds from CA to start looking for a new primary in OR.  Both CA and OR tax residents on all income received from anywhere while residents.   That's why this is so critical.  In this case, wouldn't the closing date be the date we relinquished CA residency?.  Thank you for your help. 

[DMarkM1]

You are correct.  Once you established OR as your residence with no intent to return to CA that is the OR residency date.  You will file as part-year residents in each state.     

[smitchells]

Thank you for the help!