Question

Selling stock and then move out of state

Forum|Forum|6 years ago
March 9, 2020
1 reply
0 views

Let’s say I would like to sell stock for a capital gain and I currently live in California. Later this year I plan to move to North Carolina. Does it matter when I sell the stock? I’d like the gains to be taxed at the NC tax rate and not the CA tax rate. Does the capital gain get taxed at the level of the state you live in on Dec 31 or the state you resided in when you sold? Or, do I have to split the gain based on the amount of time I lived in each state?

Thanks

Not A Product Question

Kat11_2

Employee

Yes, you'll have to allocate the income to the state of residence at the time of the stock sale. The TurboTax FAQ I'm linking below will explain more.

How do I allocate split income for a part-year state return?

*Please click the thumbs-up icon if this response was helpful.
**Please click "Mark As Best Answer" if your question has been resolved. Thank you.

*** I am NOT a tax expert. I am a seasoned TurboTax user, and volunteer to provide assistance to TT users. Nothing I post is to be considered TAX ADVICE; I bear no legal liability for responses.***