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I am moving from CA to WA in 2021 March. I have lived in CA for 5 years and accumulated almost $300K in long term capital gains.

Should I wait to sell them after I move to WA? Will that help me avoid the 10% tax that CA imposes?

I understand that there could be some market risk as my gains may go up or down based on market conditions when I try to sell. let's ignore that for this discussions.

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    Is the investment in stocks/bonds/mutual funds/ ETFs, or is it property? Is it in a fund tethered to the state such as a 529 plan, or state bonds? – mhoran_psprep Oct 24 at 10:56
  • @mhoran_psprep The investments are in stocks/ETFs – Ballelaka Oct 25 at 23:45
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Should I wait to sell them after I move to WA? Will that help me avoid the 10% tax that CA imposes?

Ignoring the risk of waiting.

You will have to provide enough proof that California can't claim you are still a resident of their state.

That means don't sell until you have completely severed all ties to the state of California. Get a new drivers license, and register to vote. Register your cars in the new state. Close your California bank accounts, and open one at a bank in the new state, and put all your money there. Have all your mail sent to the new state. Don't own, rent, or lease property in the California, get a place in the new state. Don't have your stuff in a California storage facility. Have a job that doesn't connect you to California.

The more connections you still have to California the more likely they can argue that they are allowed to tax your income.

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