Message Font: Serif | Sans-Serif
No. of Recommendations: 0
The point being that for the specific set of facts under consideration, there is no way to avoid reporting the full capital gain to CA.

No, I disagree with this. Sort of.

As part of the non-resident tax calc, all income and deductions worldwide will need to be reported. Then the CA source income will need to be identified.

In this case, it is possible that our OP has a non-CA source capital gain. A simple tweaking of his fact pattern would make me state pretty confidently that the gain is NOT a CA source income item.

For example, if he could say that the funds in this particular account were an inheritance that his wife received, they would pretty clearly be her separate property. Then since she is a non-resident of CA, the capital gain would be non-CA source income.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.