CA 540NR non-resident cap gain

If you did not live in California at all in 2023, are completing a Nonresident California return, and have only W-2 income from California, then you should not be taxed on capital gains received in another state.

As a nonresident, you pay tax on your taxable income from California sources. See this California FTB webpage for more information.

Sourced income includes, but is not limited to:

• Services performed in California
• Rent from real property located in California
• The sale or transfer of real California property
• Income from a California business, trade or profession

Prepare your Federal return first, then your California return. Answer the interview questions to identify the California-sourced income. File your resident state (if it has an income tax) last. You may be able to take a credit on your resident state return for taxes paid to California. 

For more information on this topic, see Multiple States—Figuring What's Owed When You Live and Work in More Than One State.