CA People

[JG EA]

If there are 2005 changes to a CA 540NR only - no tax changes - should an amended CA return be done?

[S T]

??

JG,

What type of changes???

Sandy

[JG EA]

Changes

The client claimed becoming a resident of CA late in 2005, but that did not fit the facts. So they want to change it.

PS Do you like my disclaimer?

[S T]

Filing 540 or 540 NR

So did the t/p file a 540NR as a part year or non resident? Did they have income from Calif in 2005?? When did they actually become a resident of Calif?

Yes I like your disclaimer!!

Sandy

[JG EA]

Yes,

They had him as moving into CA late in the year (last quarter of the year) for just him, the spouse as not moving in. Yes, the TP worked in CA - that's his job now, but he is not changing his residency. All the facts show that he hasn't changed residency, voting, banks, school, everything.

And he pays the same tax in CA either way. So it is really just that one line that has date of moving in to CA that changes.

OK, I'm officially tired now so, I'll wait to get an answer tomarrow.

Thanks for all your help!! I'm not moving this to the top, but wanted to say thank you.

[S T]

Hmmm

I'll take a look! But Jainen will probably answer before I post back

Nite,

Sandy

[jainen]

not very likely

>>he pays the same tax in CA either way<<

That's possible, but not very likely. If he is not a resident of California, his California income will be taxed by both California and his home state, and California allows a credit for the double-taxed income. Of course, not every other state has income tax, and some states take the credit on the resident return instead.

If he is a California resident he must pay tax on all income received in California even if it was earned in the other state. Another issue with the home state is that if it is a community property state then all marital income and deductions are divided 50/50 even though they don't live together.

California may not accept his change of heart after he already declared himself a resident, especially if he continues to live and work here for many months. Remember that it is entirely possible to be a resident of two states at the same time.

[S T]

I think

Jainen, I think this is the t/p JG was talking about the other nite, Washington and no state tax there. Washington is also a Community Prop state.

If the spouse hasn't moved to Calif would the t/p residing in Calif be able to file MFS in Calif as a part year resident or non resident for that matter. If he hasn't changed his voters, drivers license and is temporary assignment does he become a resident of Calif.

Sandy

[jainen]

Can't say

>>If he hasn't changed his voters, drivers license and is temporary assignment does he become a resident of Calif.<<

Can't say. How many politicians got in trouble last November because they weren't registered to vote in the county where they lived? And that out-of-state drivers license is only good for TEN days when you work in California.

If you are living here for nine months you are a resident by definition, regardless of where you vote, and JG's client is already at least half way there.

Even if he is "domiciled" in Washington (which means that is his permanent home to which he intends to return), he is probably a California resident. I would put quite a bit of weight on his already filing as a resident, and be pretty skeptical that he later changed his mind and decided retroactively not to be a resident after all--I mean, before all.

It's not part of the original question, but I'd like to point out that community property laws apply even across state lines and prevent him filing MFS if his federal return is joint.`

[Scarecrow]

PS Do you like my disclaimer?

I thought about it, but then you told me not to think about it. Then I thought about it some more, then I remembered you said not to think about it.

Now I’m getting dizzy.

[S T]

Calif Info

JG,

Here is a link to some of the questions that you might have regarding your t/p. http://www.ftb.ca.gov/forms/06_forms/06_1031.pdf Has some good examples and charts regarding the residency and community property.

Sandy

[JG EA]

Thanks, this is perfect

Thank you so much. I have just printed this out. (I also put in another thanks on a previous post but didn't move it to the top.)

Pub: I really think this will either answer all my questions, or at least help me to know where to ask any remaining quesions.

Since the client is meeting with me soon, I really appreciate this help.

Just perfect!

[S T]

Glad It Helps

Somehow, charts and pictures and examples always help me, as when we are posting on the board, we can't always project and express what the exact circumstances are.

Sandy