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Updated almost 7 years ago,

User Stats

16
Posts
6
Votes
Tara G.
  • Denver, CO
6
Votes |
16
Posts

Move Co to Ca: Sell CO rental first b4 CA taxes it?CPA/RE lawyer?

Tara G.
  • Denver, CO
Posted

I own a rental in CO (over 5 years definitely classified as 'investment property').  I may be moving to CA soon.

I have plans to sell the CO rental in the next few months.

From what I have read, it appears that it's better to do this BEFORE I am a resident of CA.  If I move to CA and THEN sell the CO rental, I think CA taxes me on 'global income', which means whatever I get off the sale can be taxed or partially taxed, in addition to Colorado taxing me on it.  I am in a high tax bracket.  (I MAY do a 1031 exchange, but let's assume that I am not able to find something I want to exchange into, for now).

Am I right on this?

I would like to ask someone who will be able to answer this clearly.  Do I ask a CPA?  Do I ask a RE Lawyer, or is that overkill?  I would like to find a CPA who I feel is better with rentals,1031 exchanges, etc.  I have not gotten a clear answer, and am unsure who the right person is to call.  I am somewhat of a rookie- not an experienced landlord or investor (yet).

Thank you for your time.

  

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