Where To Report

[TAX]

As I am doing tax return for a client who moved from NJ to CA - I have questions.

Where do you report following income:

(1) interest income, Dividend Income, sell of stocks, Capital gain distribution etc.

(2) Do you have to divide based on # of months or you pick a state

Any thoughts, please

Thank you!.

[Snaggletooth]

Wild Answer

This is just what I've encountered in southern states, and not necessarily the avariciously revenue-greedy states of NJ and CA.

Any revenue for which a date can be fixed should be reported in the state of residency at the point of consummation. Sales of property are usually affixed a specific date, etc.

Even such things as interest and dividends can be split using monthly statements. No easy proration available. However, if you were to pro-rate, it would have virtually no chance of being challenged.

[Gary]

Yes

I agree with Snag. make sure any moving expenses go to the state to which the Taxpayer moved.

[S T]

Calif

I always pro-rate Calif to New State or vice versus, same with retirement income, etc. Seems to work, as I don't receive notices.

I usually use months or mid months depending, or if you want actually obtain the backup data and look at the dates, and allocate to the appropriate state.

Calif usually willing accepts and will not challenge. Extra revenue for them.

Sandy