Moving to CA after rsu vest in WA

Amazon / Eng HTTP420
Oct 31, 2018 9 Comments

I’d like to hold my amzn stock once my RSUs vest in Nov. However i’m moving from Washington to California this Dec.

From an income tax perspective, what is the right move here? Do I need to sell before I move in order to pay the lower WA income tax and re-buy so that i then only pay CA income tax on the gains thereon?

comments

Want to comment? LOG IN or SIGN UP
TOP 9 Comments
  • Amazon odVN70
    If they vest in November, isn't it the same as purchasing it in the month?
    Oct 31, 2018 4
    • Amazon / Eng HTTP420
      OP
      Should i sell 1 day before the move so that cap gains if any between vest and sale arent taxed CA state tax? Then buy again
      Oct 31, 2018
    • Amazon odVN70
      If you have that many shares vesting, then I probably would consider at least computing the gains to see if it's worth the hassle. Probably would talk to an accountant though
      Oct 31, 2018
    • Apple boof
      RSUs are taxed when they vest. If you sell, you’ll pay capital gains only on the difference in value (if greater) from the vest date and the sell date.
      Oct 31, 2018
    • Amazon odVN70
      I think OP is implying that there's some state tax on capital gains in CA. No idea if that's true, but I think the concern seems to be the tax on any potential gain for the month between vesting and moving
      Nov 1, 2018
  • Microsoft TellMyWifi
    And they take taxes out of the granted shares based on WA income tax. You would pay cap gains in CA when you sell.
    Oct 31, 2018 2
    • Amazon / Eng HTTP420
      OP
      Should i sell 1 day before the move so that cap gains if any between vest and sale arent taxed CA state tax? Then buy again
      Oct 31, 2018
    • Apple boof
      Yes. CA capital gains rate is just under 10% if your income is btw $115k-$550k. It’s 0% in WA. That’s only paid on any appreciation in value since the time of vesting, though.
      Oct 31, 2018
  • New datums
    Waiting until Jan will simplify tax filing. You shouldn't owe any CA taxes on non-CA income if you lived here less than 6 months. If you do come in December, make sure you file only the 1 month of W2 income on your CA state income taxes. Don't submit the prior years income.
    Oct 31, 2018 0