Bought Stock in One State and Sold After Moving?

[zeros]

New client worked in Minnesota and purchased company stock while employed there. Retired and moved to Nevada where he then sold his stock. No problem on the Federal but what state does he report the stock sale? Nevada has no state income tax. To make it more confusing, the wife still lives and works in Minnesota.
Hmmmmm

[ATSMAN]

New client worked in Minnesota and purchased company stock while employed there. Retired and moved to Nevada where he then sold his stock. No problem on the Federal but what state does he report the stock sale? Nevada has no state income tax. To make it more confusing, the wife still lives and works in Minnesota.
Hmmmmm

Most people in a situation like that file MFJ Federal and MFS state. Assuming the stocks were in the TP name only, and sold by TP while a resident of Nevada, MN has no claims to the CG. But if the stocks were jointly owned you have to allocate gain between the spouses and since Wife is still a resident of MN she will have to include that in MN return.

[S T]

My understanding of the State taxation is the same as Atsman

Fortunately, my taxpayer is Single!

I currently have a taxpayer under a Calif Audit trying to tax Employee Stock and she retired and moved to Nevada sold Company Stock one year later , so we are fighting Calif Claim to taxation.

Sandy

[Rapid Robert]

New client worked in Minnesota and purchased company stock while employed there. Retired and moved to Nevada where he then sold his stock. No problem on the Federal but what state does he report the stock sale? Nevada has no state income tax. To make it more confusing, the wife still lives and works in Minnesota.
Hmmmmm

What kind of employer stock purchase? Statutory or non-statutory? If some of the income is ordinary income tied to work as employee, it may still have source in state where earned.

Also, Nevada is a community property state. If he is domiciled in NV, half his income MAY belong to his spouse, if it comes from community property, and needs to be taxed where she is a resident.

[FEDUKE404]

Say what ??

My understanding of the State taxation is the same as Atsman

Fortunately, my taxpayer is Single!

I currently have a taxpayer under a Calif Audit trying to tax Employee Stock and she retired and moved to Nevada sold Company Stock one year later , so we are fighting Calif Claim to taxation.

Sandy

OK. . .I need a laugh.

How in the heck does CA possibly justify a tax claim on income from a stock sale of a person who lives in another state? ?

FE

[Lion]

If the stock was part of her compensation package from her CA employer when her tax home was in CA, then CA will argue that the proceeds from the sale are also CA-sourced income.