CA tax question with treasuries ..

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Topic Author
Peppergrass
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Joined: Tue Mar 27, 2018 7:25 pm

CA tax question with treasuries ..

Post by Peppergrass » Tue Sep 18, 2018 6:07 pm

Hi guys,

wondering on something..

say I had all income from treasuries, lets say 1 million.. if I went and produced any other income, does it get charged at top CA tax rate ( 13.3% ) even though treasuries got no CA tax?

I'm guessing yes, as AGI would say 1 mill right?

Thesaints
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Re: CA tax question with treasuries ..

Post by Thesaints » Tue Sep 18, 2018 6:09 pm

Income from treasuries is not reported on your 540. So, no, you would be taxed not considering that income, but have a look at the CA AMT rules, anyway.

kaneohe
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Re: CA tax question with treasuries ..

Post by kaneohe » Tue Sep 18, 2018 6:24 pm

I'm voting w/ Thesaints . CA return starts w/Fed AGI . It then makes adjustments on Sch CA where the treasury interest gets subtracted out leading to the CA AGI w/ only the other income to be taxed at the lower brackets.

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HueyLD
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Re: CA tax question with treasuries ..

Post by HueyLD » Tue Sep 18, 2018 6:47 pm

I think the OP may be thinking about foreign earned income exclusion and the high marginal rate assigned to the non excluded income.

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TimeRunner
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Re: CA tax question with treasuries ..

Post by TimeRunner » Tue Sep 18, 2018 7:22 pm

kaneohe wrote:
Tue Sep 18, 2018 6:24 pm
I'm voting w/ Thesaints . CA return starts w/Fed AGI . It then makes adjustments on Sch CA where the treasury interest gets subtracted out leading to the CA AGI w/ only the other income to be taxed at the lower brackets.
I must be glazing over something. Why are there Calif Tax Exempt bond funds if Treasury bond funds are completely tax exempt in California?
One cannot enlighten the unconscious.

retiringwhen
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Re: CA tax question with treasuries ..

Post by retiringwhen » Tue Sep 18, 2018 7:38 pm

TimeRunner wrote:
Tue Sep 18, 2018 7:22 pm
kaneohe wrote:
Tue Sep 18, 2018 6:24 pm
I'm voting w/ Thesaints . CA return starts w/Fed AGI . It then makes adjustments on Sch CA where the treasury interest gets subtracted out leading to the CA AGI w/ only the other income to be taxed at the lower brackets.
I must be glazing over something. Why are there Calif Tax Exempt bond funds if Treasury bond funds are completely tax exempt in California?
Federal Taxes

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TimeRunner
Posts: 1583
Joined: Sat Dec 29, 2012 9:23 pm

Re: CA tax question with treasuries ..

Post by TimeRunner » Tue Sep 18, 2018 7:49 pm

retiringwhen wrote:
Tue Sep 18, 2018 7:38 pm
TimeRunner wrote:
Tue Sep 18, 2018 7:22 pm
kaneohe wrote:
Tue Sep 18, 2018 6:24 pm
I'm voting w/ Thesaints . CA return starts w/Fed AGI . It then makes adjustments on Sch CA where the treasury interest gets subtracted out leading to the CA AGI w/ only the other income to be taxed at the lower brackets.
I must be glazing over something. Why are there Calif Tax Exempt bond funds if Treasury bond funds are completely tax exempt in California?
Federal Taxes
j I was thinking US Treasuries were exempt from Federal Taxes. You're right, they aren't. :oops:
One cannot enlighten the unconscious.

Topic Author
Peppergrass
Posts: 49
Joined: Tue Mar 27, 2018 7:25 pm

Re: CA tax question with treasuries ..

Post by Peppergrass » Tue Sep 18, 2018 9:56 pm

Thank you guys. I’m asking as family is looking to move to CA. So I have no clue as I come from the wonderful land of no income tax ( WA )

I will check out CA AMT as I didn’t know about that either... not a big worry though as I was wondering where my other money gets taxed at and should for sure fall above AMT lines but I’ll have a look.

You guys stun me with the replies and quality here as always

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