571. If spouses move from a community property state to a common law state, will their community property rights in the property they take with them be recognized and protected by the law of their new domicile?Nuco Employeercline212014-07-29T19:05:00Z2014-07-29T19:05:00Z1122699UMKC5182014Site Map/General Income Taxation/Individuals/Community PropertyTaxFactsDefaultArticle124171446-00-tf2.xml1446.00;#1721;#0x010100C568DB52D9D0A14D9B2FDCC96666E9F2007948130EC3DB064584E219954237AF3900242457EFB8B24247815D688C526CD44D009C4E67E972694125ABDA91AC61F5E51FTax Facts 2If spouses move from a community property state to a common law state, will their community property rights in the property they take with them be recognized and protected by the law of their new domicile?53700.0000000000TaxFactsDefaultArticleSBMEDIA\moss-admin2010-01-14T23:12:19Z571. If spouses move from a community property state to a common law state, will their community property rights in the property they take with them be recognized and protected by the law of their new domicile?Yes.Johnson v. Comm., 7 BTA 820 (1927). Thus, if the spouses report their incomes separately, the income from the community property or from property into which the community property is traceable is reported by the spouses as belonging one-half to each.Phillips v. Comm., 9 BTA 153 (1927). If income is community income, the deductions applicable to it must be taken one-half from each spouse’s portion if they file separately.Stewart v. Comm., 95 F.2d 821 (5th Cir. 1938). But if community property is commingled with one spouse’s separate property so that the original community property cannot be traced, the income from the property must be reported as that spouse’s separate income, if the spouses file separately.Johnson v. Comm., 1 TC 1041 (1943), appeal dismissed, 139 F.2d 491 (8th Cir. 1943).