Skip to main content
February 25, 2025
Question

Tax on home sale when moving from CA to AZ

  • February 25, 2025
  • 1 reply
  • 0 views

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?

    1 reply

    February 25, 2025

    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?

    **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
    SSGLAuthor
    February 25, 2025

    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?

    February 25, 2025

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

    **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"