State Allocation of Capital Gains Income

[bbrownatl]

It's late and my brain is running on fumes. Have a client who moved during the year and later sold some stocks at a significant gain. Say the gain was $10K. Do you
1) Prorate the gain between states (i.e. 4/12 to one and 8/12 to the other)
2) Give it all to the original state (where lived the first part of the year and many years prior)
3) Does it all go to the state where the taxpayer resides at the time of the sale?

Any insight appreciated.

Thanks.

[David1980]

Generally 3, but I'd check the form instructions for the states you're working with.

[S T]

I would say

If stocks sold while in the prior state report those to the old State,

If stocks sold while in the new state report those to the new State.

Much the same as allocating retirement income where you have to pro-rate based on months in each state.

Sandy

[bbrownatl]

Good insight, much thanks

Much thanks and at this late hour on the east coast.