- quote -

CA has a much higher state income tax than NH.

Unfortunately, he can't.

Seth

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LC wrote:

- quote -

Not sure why you would want to. As 2007 business income,
you won't have to pay all the taxes on it until a year from
now (although first-quarter estimated tax payment may
partially negate that benefit). You could also justify the
deduction of on-going business expenses, including
depreciation, at least through the date of receipt of this
income.

- quote -

Based on what you said, yes.

-Mark Bole

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"LC" <L...[at]NoSpam.com> wrote:

- quote -

As a cash method taxpayer, you recognize the income in the
year you receive it. You received it as a California
resident, so it will be subject to tax (to the extent of the
gain) in 2007, not 2006. Even if you had received it in
2006 after December 4, it would have been subject to
California tax.

Yes, you are a part-year resident of each state for 2006.

Katie in San Diego

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I ran a single-member LLC using the cash accounting method
with no employees in NH from 1/1/2006 to 12/1/2006. I closed
the business and moved to CA on 12/4/06 to take up fulltime
employment. I received the last payment check for the
business on 1/11/07.

1) Since the business is closed, can I include this check in
the 2006 final federal and states tax return?

2) Am I part-year resident of both NH and CA in 2006?

Thank you
LC

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >