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Subject:  Re: retire early study Date:  2/15/2000  6:27 PM
Author:  Chipsboss Number:  3957 of 878824

Hi, Tom,

Brief answer: My pension, IRA withdrawals, dividends and capital gains in the stock market, and your profits in stock options are not subject to California income tax when received by either of us while we are citizens of any other state, according to California tax authorities.

Wordy answer: I sent this message to the California Franchise Tax Board:

Sent: Tuesday, February 15, 2000 11:37 AM
To: ca.taxhelp
Subject: Re: Website Emai: Personal Income Tax

Does California consider any of the following to be taxable "income from California sources" for someone who has established residence and citizenship in another American state?

1. Corporate pension earned working in California

2. IRA withdrawals with some or all IRA contributions made while a California resident

3. Dividends, interest or capital gains on financial assets acquired while a California resident

4. Proceeds from out-of-state sales of stock options granted but not exercised while a California resident.

I just got this answer:

Thank you again for visiting FTB's Website. All the types of income you referenced below have a source in the state you are residing when you receive the income. Therefore, if you received your pension and IRA distributions while a resident of another state, they are not taxable to California. The same is true for the dividends, interest, and proceeds from stock options. I have attached our publication, Guidelines for Determining Resident Status, to this email. It has very good information regarding the taxability of nonresident income from California sources.

Chips, on his way to a new house in Nevada in a few months

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