Part Year

[S T]

Have a t/p that was a part year resident of colorado and part year Calif. Sold a business in Colorado on installment sale , and received $31,000 interest payment, but it was received after moving to Calif and taking up Calif residency.

So which State to tax the interest payment? What is going to happen to subsequent installment payments and interest payments? Which State?

Sandy

[JG EA]

Usually installment sales are different than interest from a bank. In most states they tax the sales on installments if they would be taxable for a resident, the percentage of principal and the interest. I don't know for sure about Colorado, but perhaps their booklet is on line?

So, my best guess is taxable to Colorado and Calif with all appropriate credits.

[S T]

That is my thought

Taxable to Colorado as that is where the installment originated, but the payment was received as a Calif resident.

So if I can think correctly at this point in time (highly doubtful) on 416/07 taxable to Colorado and Calif with a other state (dual) tax credit to Calif.

Jainen, where are you?

Sandy

[jainen]

blank payment vouchers

>>Jainen, where are you?<<

Oh, I'm here. Us west coasters have to stay the course long after those easterners quit. Unfortunately my California non-resident book is in my other office.

What you all say about the capital gain sounds right to me too, but I'm sure interest is always sourced to the resident state.

I just gave up on that extension. It's a self-employed, and her income varies widely. She sold a condo that I had thought was owned through a partnership. She files MFS with a post-nup disclaimer, but her kid (also on extension) has to use Dad's tax rate and I don't even do his return. Did I mention all three states? I efiled with zeros and faxed them blank payment vouchers.