Non resident capital gains

Forum|Forum|1 year ago
June 17, 2024
1 reply
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I worked and retired in Texas. I took my 401K and bought mutual funds at Ed Jones Inv. in Texas. I moved to Oklahoma 2 years ago and pulled monies out of my mutual funds last year. Do I pay capital gains to Oklahoma State on that money that was made in Texas? I’ve ask 2 CPA’s and get different answers. Help

Best answer by NCPERSON1

Since you took a distribution while living in OK, it is income reportable to OK.

Further, it is ordinary income NOT capital gains. Normally, the entire distribution is reported as taxable income and you will pay ordinary income to both the IRS and OK.

@Marlacarr

NCPERSON1

Did you simply sell from within the 401k, in which case there is no tax... or did you take a distribution, in which case there is ordinary income tax fo be paid

on the date you took a taxable distributed from the 401k the state you were living in on that date is where any state tax would be owed.

MarlacarrAuthor

I took a distribution and was living in Oklahoma at the time. Thanks for the quick response. I have called the Oklahoma State Tax office 3 different times and all 3 people said they didn’t know that would be a question for a CPA. You would think if the State tax office has rules about capital gains their employees should know the answer.

NCPERSON1Answer

Since you took a distribution while living in OK, it is income reportable to OK.

Further, it is ordinary income NOT capital gains. Normally, the entire distribution is reported as taxable income and you will pay ordinary income to both the IRS and OK.

@Marlacarr