Can we qualify as "part year residents" in California?

September 21, 2005

Date:  Mon, 12 Sep 2005
From:  Mark

Do you know anything about California tax?

We used to live in New Jersey, but are looking for a new home with a better climate. We like California, but also have family in Canada/BC.

California has a 'part year resident' status which taxes on income but not on dividends paid or interest received. If we live in Canada for six months and in California for six months, can we qualify to file as "part year residents"?

Answer

Date:  Wed, 14 Sep 2005

Hello Mark,

The "part year resident" status is mostly designed for people moving to California or out of California, and for people who are temporarily working in California.

It will really complicate your tax status to live in two different countries, let alone two different states/provinces.

If you still think you would like to pursue this idea, I suggest that you have a paid consultation with a tax advisor familiar with the issues. Also, consider states that don't have income taxes like Washington, Nevada, Texas or Florida.

Good luck!
Mike Gray

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