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Old 05-15-2015, 08:49 PM
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Sell primary home in CA then move to Florida

Hi,

I plan to sell my primary home in California in January 2016 then move to Florida in February.

When I file tax return for the year of 2016, will I have to pay CA capital gain tax on the excess amount above $250K (for single)? Assuming I will become FL resident and no longer a CA resident.

Thanks



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Old 05-15-2015, 09:21 PM
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When I file tax return for the year of 2016, will I have to pay CA capital gain tax on the excess amount above $250K (for single)?=====>>Yes as you disposed of the home in CA as a CA full year resident of CA.




Assuming I will become FL resident and no longer a CA resident.======>As a part year resident of FL during the year of 2016 but sold the home in CA as a full year rersident of CA, no need to pay capital gain tax to FL; as you moved to the state during year of 2016, you’ d be a part year resident of FL and part year resident of CA. Since 1997, up to $250k in capital gains on the sale of a home are exempt aslongas you have lived in the home as your principal residence for two out of the last five years. The two year residency test need not be "continuous ;you have not sold or exchanged another home during the two years preceding the sale.



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Old 05-16-2015, 11:17 PM
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Thanks "Wnhough" for then answers.

Another question: If I do Roth IRA conversion after moved to FL, do I have to pay CA tax on the amount I convert from IRA to Roth IRA?



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Old 05-16-2015, 11:51 PM
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Quote:
Originally Posted by tonyn123 View Post
Thanks "Wnhough" for then answers.

Another question: If I do Roth IRA conversion after moved to FL, do I have to pay CA tax on the amount I convert from IRA to Roth IRA?
No i do not think so unlike the case of the home sale in CA as a CA FY residnet, as a part year residnet of FL, you converted it to R-ira in FL NOT IN CA, so no you do NOT need to pay tax on the conversion to CA as a PY res of FL. So your Roth conversion is considered taxable income, ONLY to the federal government NOT the state of California. as said no income tax in FL, so no need to pay tax on your conersion to FL



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