Roth IRA conv. in 2010 and moved to another state in 2011
A client did a significant roth ira conversion in 2010 while he was a Florida resident. In 2011 he moved to California. Should he pay CA. tax on the conversion or would he have an out because it was originally done while he was in Florida?
Permalink Submitted by Denise Appleby on Fri, 2012-04-27 12:48
Did you get an answer for this one? Seems it was needed to allow the tax return to be filed by April 17
Permalink Submitted by Alan Spross on Fri, 2012-04-27 17:48
Hi Denise,
I thought Mary Kay would address this one because she replied earlier regarding to a similar post. The following release from the FTB probably addresses the question, and it looks like income will have to be reported in CA pro rated from date residency was established there in 2011. Plus the full 50% for 2012.
https://www.ftb.ca.gov/professionals/taxnews/2011/February/Article_4.shtml
Permalink Submitted by Bruce Steiner on Fri, 2012-04-27 19:57
Did he elect to report all of the income in 2010? If so, there wouldn’t be any California tax. If not, can he move back to Florida now and limit the California tax for 2012?
Permalink Submitted by Denise Appleby on Sun, 2012-04-29 10:17
[quote=”alan-oniras”]Hi Denise,
I thought Mary Kay would address this one because she replied earlier regarding to a similar post. The following release from the FTB probably addresses the question, and it looks like income will have to be reported in CA pro rated from date residency was established there in 2011. Plus the full 50% for 2012.
https://www.ftb.ca.gov/professionals/taxnews/2011/February/Article_4.sht…
Hi Alan- thanks for the link.