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Old 05-22-2013, 03:20 PM   #1
SteveR
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Capital Gains from sale of stock

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I currently live in New Hampshire - a state with no Capital Gains tax - but I will be moving to Colorado in July. I have some stock to sell which will result in Capital Gains.

Question: If I sell the stock now and realize the gain while I live in NH, will I have to declare the gain on my Colorado state income tax when I file for 2013 next year?

In other words, is Capital Gains taxable only in the state of residence when realized, or will Colorado want to take a slice regardless?

Any other nuances I should be aware of in this scenario?

Thanks!
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Old 05-23-2013, 03:22 AM   #2
skier_j
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assuming you actually change residencey to CO, only the NH stuff would apply to NH and only the CO stuff would apply to CO.

You will have one of the more involved state tax prep issues the year of change, but rest assured that assuming a real residency change, only the stuff earned, or sold during each states residency period apply to the respective states.

Do be careful with sale and settlement dates tho. No sense shooting yourself in the foot because you sold on Monday, established residency in CO on Thursday and the sale settled on Friday.....then it would be a CO sale.
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Old 05-23-2013, 12:47 PM   #3
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Residency

Thanks, Skier.

What constitutes residency? This gets tricky. What if I
- close on a house in Colorado June 1
- sell the stock on June 15
- physically move to Colorado on July 1

Does owning a home in CO, even though I will still have NH residency (lease, drivers license, voter registration, physical presence) complicate matters?

The right outcome here could save me quite a bit of money, but I would like to do everything correctly.
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Old 05-23-2013, 01:17 PM   #4
skier_j
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why not just sell now and avoid the whole situation? make sure the sale settles before you physically leave NH?

Buying a house is one step, voter reg, licenses, mail delivery are all signs than point to residency, paycheck change is another. Intent is a large part as well.
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