California Preparers

[WhiteOleander]

Client moved from CA this year. Was there approx 8 months in 2008.

After they arrived here in TX, they cashed in some CD's. The interest on the CD's is about 8000.00.

On the part year return, is any of the interest taxable to CA. Just not sure if the interest is considered received while they were in CA or TX since they didn't cash in the CD's in CA.

Thanks

[S T]

Interest

When was the interest posted to the CD accounts?

Example: I have some CD's that the Banks post the interest monthly, then other banks, will post them quarterly, and I have one that accumulates, but they don't post the interest except annually or at maturity of the CD.

That might be a factor in determining which State to report to.

Sandy

[WhiteOleander]

I'm not sure. But, if it was actually posted to the account before they left CA, then it is probably taxable to CA?

Thanks

[Kram BergGold]

How I do it

I ahve always just prorated interest on a monthly basis. When I have a passbook CD and I go to the bank and update the book it shows
an amount of interest for each month.