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Part-Time Calif Resident - Taxation of Investment Income

February 13, 2017 • Janet Campbell • Log In to Post Comments

~~You mentioned we could send you our tax questions.  So, here goes….

My client moved out of California to South Dakota in May 2015.  She took numerable measures to substantiate her move to South Dakota (driver’s license, car registration, voter registration, etc.).  And, spent the second half of 2015 traveling in her camper van to Alaska, Canada and around other parts of the United States (not California).

For 2015, she had interest income of approx. $2000; dividend income of approximately $38,000, and capital gains of approximately $5,000.  My questions: 

1) For 2015, as a part-time resident of California was all of the above investment income fully taxable by California for 2015, or only some portion of it? 
2) For 2016, she visited friends in California and attended to her rental property, but was not in the State for less than 45 days.  Would any of her investment income be taxable by California for 2016.

I appreciate any comments and opinions.


Comments

From the date she estabilshed her residency and domicile in SD, her investment income would be taxable to SD and not CA. I am am hoping she also established a permanent address in SD before she started travelling or CA may say she was a CA domicile and resident until she actually obtained a permanent place in SD. For 2016 only the rental income in CA would be taxable not the investment income.

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