Contact UsA question on California tax, I am planning to move to California from London (I am a US national) in Nov or Dec of 2013, and am wondering what I need to be aware of regarding a partial tax year in California. I am specifically interested in how the state would tax the partial year because we have two elements which are occurring in 2013, but before the move (Income from advisory/directorship and the sale of our house):
Income:
1 - I have an advisory contract in the UAE which ends this month. It's taxed in UK, but I do get the US Foreign tax credit under the treaty. I assume this would not be taxed in California, as it is specific in timing and will have expired/ been received before the move there. Can you confirm?
2 - I also have a directorship position in UK, for which I am paid a monthly fee. Would California tax this if I moved before Dec 31?
3 - I was wondering if there is any issue with having California tax accept the US Foreign tax credit for UK taxes, as the basis for taking California tax?
4 - Would other earned income, such as pensions, USSS, interest, etc, be pro-rated by days, or maybe taxed based on specific date. If so, which?
Sale of our house:
1 - We are selling our house in London before we leave, which has a substantial long term capital gain. No tax in UK on this, but for US tax, we have LT capital loss carryforward from 5-6 years ago, which will cover that gain entirely, so no US tax. I am wondering, however, if there is any issue in California with using that capital loss C/F, and specifically as the actual sale of the house is scheduled is for 29 Nov. In that event, what would the tax situation be if:
a--if we move to California before the sale of house completes
b--if we move on Dec 31, and both capital loss c/f and sale gain happen in the period prior to California residency.
Is there anything else I should worry about from a California tax standpoint? No other complicated issues, no more management options or ISOs, no IRA, no 401K.
