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To: CatOwner

If you sell your home after you move out of state and
say declare residency in Florida, do you have to pay any capital gains tax at the state level. Obviously, you will pay federal income tax on the gains but just file a Florida
tax return. (I am not an accountant but I live in Maine which has a high state income tax but will retire in two years and will be selling property in ND and/or MN).


10 posted on 01/04/2018 9:39:44 PM PST by Maine Mariner
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To: Maine Mariner

I know if you operate any business in CA even after you leave, you can be taxed on the CA income. (Not income generated somewhere else.)

CA wanted to continue to tax a pension paid by a company in CA even if you moved out of state to retire. They lost that battle, so you can receive a pension earned in state and live out of state. You will have to pay tax on the pension if the state you move to has an income tax. But there are several states without state income tax.


14 posted on 01/04/2018 10:04:34 PM PST by KC_for_Freedom (Trump has one good idea after the other.)
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To: Maine Mariner

Yes. CA will withhold 3 1/3% of the sale for taxes if you do not live in the state, or if it is a rental property.

The escrow company will withhold at closing.


16 posted on 01/04/2018 10:34:07 PM PST by gubamyster
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To: Maine Mariner

Have you considered insurance fraud?


23 posted on 01/05/2018 1:24:48 AM PST by outofsalt ( If history teaches us anything it's that history rarely teaches us anything)
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To: Maine Mariner
Sorry, but the property is still in California so taxes would still be due on capital gains. There is an exclusion for gain on sale of personal residence, but I am not familiar enough with California tax law to know if they have the exclusion.

On a lighter note, when you retire you could owe taxes on your property in ND and MN, because the property is still in ND and MN (again it depends on what their state law is). Doesn't matter in which state you reside.

And I am an accountant, but recommend you speak to an accountant familiar with the tax laws in those states.

24 posted on 01/05/2018 2:20:57 AM PST by BruceS
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