do i have to pay capital gains taxes in both states.dAlso do i have to pay state taxes in both MT. and Ca.?
2007-02-16 12:48:07 · 6 answers · asked by j h 1 in Business & Finance ➔ Taxes ➔ United States
The Montana gain is considered "source" income from that state so file as a nonresident and pay some tax. You pay CA taxes on the gain as well but get a credit for tax paid to Montana.
2007-02-16 14:19:00 · answer #1 · answered by spicertax 5 · 0⤊ 0⤋
If you realized a gain on the sale of the property in Montana, you would most likely owe tax to Montana. As a California resident, you are subject to tax on your worldwide income, so the sale of the property in Montana would be taxable in California. To avoid double taxation, California would allow you to claim a credit against your California taxes for the taxes you paid/will pay on the property sale in Montana.
2007-02-16 14:49:52 · answer #2 · answered by jseah114 6 · 0⤊ 0⤋
Yes, but CA should give you a credit for the MT taxes paid.
2007-02-16 13:29:11 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Probably will have sales tax in Montana and State Income tax in Cali.
2007-02-16 12:59:59 · answer #4 · answered by kprokop1 1 · 0⤊ 1⤋
It sounds like you would only owe tax in MT.
2007-02-16 12:52:05 · answer #5 · answered by cinsingl83 3 · 0⤊ 1⤋
dont move to california its a nightmare
2007-02-16 12:51:27 · answer #6 · answered by mason h 2 · 0⤊ 1⤋