California, North Carolina, Federal: Northern District of California
Claimed Lawyer ProfileQ&A
A Charlotte native with international experience, and tax lawyer that is also a CPA, I help taxpayers like you with federal tax controversies and disputes, federal tax litigation matters, and IRS criminal investigation defense.
Univ of North Carolina
Concord Law School
Law Office of James R. Yandle, JD CPA
Defending Robo-Audits, 2016 Joint Spring Meeting, Key West, FL
GLSA (Group Legal Services Association)
NC Board of CPA Examiners
U.S. Court of Federal Claims Bar Association
North Carolina Bar Association
Mecklenburg County Bar (Section member, out-of-state)
A: Your resident state will tax your nationwide/worldwide income. You can claim a tax credit for taxes paid to the other state (or country). You end up, in effect, paying the higher of the two rates. Be careful of the expiring statute of limitations on claiming the credits, or you will end up being taxed twice.
A: The statute reads "only upon an annual basis." A quick review does not reveal any NC cases or regulations interpreting the language further. I think you'd be going out on a limb applying an alternate interpretation to what a court would likely consider a 'plain meaning' interpretation of the statute (although 'out on a limb' positions sometimes prevail). If the 2nd sale disqualifies the 'annual basis,' then the 1st sale would be disqualified also.