Free Trial: TheSiteFactory.com

RDP in California - One partner moves to Florida

Technical topics regarding tax preparation.
#1
Wiles  
Posts:
3652
Joined:
21-Apr-2014 9:42am
Location:
Bay Area – CA
I have a California RDP client where one partner is moving to Florida. Only the one partner remaining in CA has earned income.

Currently, I file a MFJ CA return and two Single Fed returns, splitting all earned income as community property.

Now, I think this is what I do:
* File the two Single Fed returns, but only shift earned income from the CA partner to the FL partner to the extent the CA partner shares their earned income with the FL partner.
* File a MFJ CA return, but show the FL partner as a non-resident and exclude the shared earned income from CA tax.

Is that correct?
 

#2
Wiles  
Posts:
3652
Joined:
21-Apr-2014 9:42am
Location:
Bay Area – CA
File a MFJ CA return, but show the FL partner as a non-resident and exclude the shared earned income from CA tax.

I believe that is wrong. This earned income is CA-source. So even though it is being received by the non-resident partner, it is still taxable to CA. This would still be true on a MFS tax return.
 


Return to Taxation



Who is online

Users browsing this forum: Google [Bot], HenryDavid, Terry Oraha, Zootematix and 66 guests