mks_97 wrote:

- quote -

1) As a sabbatical, it's expected that you would be
returning to your job in CA. Therefore, you haven't
abandoned your CA residence status.

2) There is no CA capital gains rate. Long term investments
are taxed as ordinary income at the state level.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

I don't think the FTB will like "the most part of next year"
or "sabbatical". Neither indicates moving away permanently
- which is their guideline.

And California hasn't had a capital gains tax for years.
They tax the profit like any other income - up to 9.3%.

Nan, EA in LA

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

It sounds as though your absence will be for a temporary
purpose. In that case, you will remain a resident during
your absence, and all of your income, including capital
gains, will be subject to California tax.

However, if you are absent for an uninterrupted period of 18
months or more on an employment-related contract, you will
meet a statutory safe harbor rule to be treated as a
nonresident for tax purposes. An uninterrupted absence is
defined to allow presence in California for no more than 45
days during a taxable year. You do not qualify for the safe
harbor, however, in any year when your total income from
intangibles (including gains on sales of intangible assets
such as stocks, bonds, etc.) exceeds $200,000.

Katie in San Diego

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

If the FTB hears "most part of next year" they'll call you a
resident. I very much doubt you can argue non-residence
status.

As for capital gains tax, California hasn't had such a thing
for years. Whatever tax bracket you're in is the tax rate
for the profit. Try 9.3%............

Nan, EA in LA

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

I have been residing in CA for the past 10 years. I was
going to be away from the country for the most part of next
year (on sabbatical)

For tax purposes, would I be considerd a CA resident for
next year? Additionally, I had some stock I wanted to sell.
I wanted to know if I sold my stock during the time I was
away, would it still incur CA capital gains taxes (I assume
I will have to pay Fedral capital gains)?

Thanks,

MKS

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >