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Old 08-02-2018, 07:59 PM
 
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Does the state of CA give people any kind of a break with selling a home like the Feds do with allowing the first $250,000 in profit with no capital gains or is the profit from the home 100 percent taxable and added to your income for the year you sell it?
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Old 08-02-2018, 09:27 PM
 
Location: OH>IL>CO>CT
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The answer may be here:

https://www.ftb.ca.gov/individuals/faq/ivr/219.shtml
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Old 08-03-2018, 03:10 AM
 
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Quote:
Originally Posted by marino760 View Post
Does the state of CA give people any kind of a break with selling a home like the Feds do with allowing the first $250,000 in profit with no capital gains or is the profit from the home 100 percent taxable and added to your income for the year you sell it?
you are confused .

your state tax is based on your federal tax . if the sale is excluded under the federal it does not mysteriously reappear when you do the state . it is not part of your income in both cases unless you don't qualify for the exclusion or went over .
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Old 08-03-2018, 05:37 AM
 
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If you're one of the lucky folks who has a big capital gain on the home (>$250,000 single or >$500,000 married), you will pay your CA "franchise tax" on the gain (up to 13.3%).
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Old 08-03-2018, 06:07 AM
 
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OK, I see then. If the first $250,000 is excluded from your Fed tax then it's also excluded from the CA state tax as well. Anything over that amount will be taxed by both Federal and State. I thought perhaps with CA being so tax hungry, it would tax the entire amount regardless of the $250,000 in gains allowed by the IRS.
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Old 08-03-2018, 02:21 PM
 
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Whoa. This is clear proof that people need to ask an accountant and not strangers on the internet how to handle tax issues. You will only pay 13.3% if you make over $1m and have held it less than a year. How long have you lived there? You will pay long term capital gains rates if you have been there over a year. Depending on how much you make, you would pay 15, 20 or 23.8 which includes the medicare tax, but is only on high earners. You get $250k free in cap gains if you are single and $500k if you are married. So give me some details and I can help you more.

Married?
How long have you lived there?
What's the gain looking like?
What's your tax bracket?
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