Does it usually take 18 months to be presumed no longer a California resident for tax purposes and a TX resident? (Austin: sales)

[dtryan]

Or is it as simple as registering my vehicle and driver's license in Texas while renting a room in Texas since I do not have any physical property in California except my vehicle? I plan to spend only 4 months in California this year and the majority in Austin.

And how do stock sales work if I hypothetically make 100k in future March 2020 while living in California but move to Texas for the majority of the year? Do I pay California tax on when the stock was sold or by my state filing status?

[cBach]

I think you're a resident as soon as you get a driver's license.

Tax questions should be directed to your CPA.

[DashRiprock]

We don't have state income tax in Texas so it all depends on what California says. Good luck.

[lynarthur]

When I moved from CA to TX a little over ten years ago, CA basically tried to get tax on as much of your overall revenue as they could. I don’t remember the details (except that it felt like being taken advantage of) but I remember thinking, if moving to CA, do it at the start of the year and if leaving, do it at the end of the year. I’d try to get some advice from someone current on CA tax law so you can plan properly. Good luck.

[Trainwreck20]

Originally Posted by lynarthur

When I moved from CA to TX a little over ten years ago, CA basically tried to get tax on as much of your overall revenue as they could. I don’t remember the details (except that it felt like being taken advantage of) but I remember thinking, if moving to CA, do it at the start of the year and if leaving, do it at the end of the year. I’d try to get some advice from someone current on CA tax law so you can plan properly. Good luck.

I have heard from multiple people that CA will try to tax you as long as they can and until you force them to stop. Do NOT take for granted anything that any state agency in CA tells you. Definitely need a tax attorney, preferably one that is familiar with CA to non-CA moves.

[Austin97]

we do a little business in california and california regularly tries to tax my entire personal income. They assume I owe them a bunch of tax and leave it up to me to explain why I dont.

Texas CPA isnt that important, you will need a CPA versed in california tax law.

[Jimmyp25]

When I left Illinois , I moved in June . They taxed my business 6 months I lived there at the state level .
I am unsure about commiefornia but I am sure they will punish and tax you for leaving that commie state . I suggest you move everything out ASAP . The longer you stay . The more you owe .

[jcp123]

I vaguely remember California trying to get some ca$h out of my pa after her retired to Texas. Letters from the tax board and such, mailed to him at our Texas house. I didn’t really ask much about it or how he resolved it, but he apparently made it go away fairly quickly. I know this isn’t much help, but it does appear to be a thing.

[IC_deLight]

California will examine your entire annual income for any year of part residency in order to elevate you to the highest possible tax bracket. After establishing the highest tax bracket it can it will then use that bracket to tax all California sourced income. The state will definitely try to steer what it can into the category of California source income. For example if you are a resident of the state for more than nine months in a year there is a rebuttable presumption of residency for the full year. To change residency from California you have to establish a new domicile outside of California and you have to have the intent to remain there (new domicile).

California chased retirees for years trying to tax them long after they were no longer residents claiming that their retirement was money earned in California. Court cases halted that back in the 90s at least with respect to reitred employees of non-state entities. Texas actually adopted legislation to create barriers to California being able to pursue taxes on former residents of California.

[Trainwreck20]

My (indirect) experience was with military retirees having their income 'chased' by California - long, long after they moved elsewhere .