Is it financially speaking? If you have to sell mutual funds with large capital gains you are paying income tax rates in CA, not capital gains rates as for Federal tax. Would it not be better financially speaking to be a resident of a zero tax state?moving away does not stop you from having to file a CA tax return the year you sell your CA asset.Hi everyone.
I live in CA. I purchased my home a while back and have significant cap gains. I don't plan on moving anytime soon but CA's taxes are so onerous that once I'm retired I will evaluate and look at moving out of state. Cap Gains are taxed as income. When I sell my house as a CA resident then the taxes on it will be substantial. If I move out of state and THEN sell the house does anyone know how the cap gains are taxed? I've not been able to find the answer online.
Thanks!
Keith
it would be the same answer if you decided to rent it out. the CA-source income means you file and pay CA taxes.
side note but when the time comes, you might learn CA is actually a fine place to retire, financially speaking.
Statistics: Posted by anagram — Thu Jan 11, 2024 8:52 pm — Replies 7 — Views 183