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We lived inthe Bay Area from 1980 -2010. We still have friends in the Bay Area as well. When we return to the Bay Area for events such as weddings and birthday parties and the like, we are astonished at its decline. Everything is in a state of disrepair. Weeds and trash. Potholes. Filth. Excrement. Soul-crushing traffic.
This is very sad. Although I lived in CA for decades, I hadn't been in that area of the state since the 1990s. I'll hold on to my memories of how beautiful it was.
What is Obama care tax? You mean extra 2% or so that they charge on annual income above $250k (or some similar cutoff, I don't remember any more - I used to pay that to the IRS, but have not paid it in a while)? I won't owe that because my annual inconme will be well below that cutoff.
No. I believe it's part of the capital gains tax. I'll need to dig around to provide link.
No. I believe it's part of the capital gains tax. I'll need to dig around to provide link.
I think you are thinking about this (should be highlighted in purple in this link). It would apply to me if I had an AGI over $200k, which I won't have:
PS- actually, it can't be even this, because my pied a terre was never used for investment, I just used it for myself. So I don't really know what you are referring to. The article I linked contains all still applicable tax implicarions of Obamacare.
Thank you for clearing this up. I know for a fact, when I sold my home in CA, in order for me to take advantage of that tax break, it had to be my primary residence. I think you need to live in it at least 6 months of the year. Rental properties, vacation homes and part time homes don't qualify.
I am amazed that someone like you who's used to all the hussle & bussle of SoCal able to pickup & leave for a small town in Kentucky? just for starters, don't you miss the food diversity SoCal has to offer? (I'm a foodie that's why I ask ). The good part is you left the meth capital of California behind
That's a good reminder. I had to look it up but, sadly; a 2nd home does not qualify for the $250K/ $500K capital gains exemption.
It does not. If sold with a gain, it is taxed as either short term (owned less than a year and taxed as ordinary income) or long term (owned longer than a year, taxed at 0-23%, depending on your other income).
If sold at a loss, that loss is not deductible (assuming it was never use as a rental).
I think you are thinking about this (should be highlighted in purple in this link). It would apply to me if I had an AGI over $200k, which I won't have:
It does not. If sold with a gain, it is taxed as either short term (owned less than a year and taxed as ordinary income) or long term (owned longer than a year, taxed at 0-23%, depending on your other income).
If sold at a loss, that loss is not deductible (assuming it was never use as a rental).
So it's a double whammy if you sold a 2nd home, first is the capital gain tax, then it's additional income tax on the capital gains.
What remaining money? I paid $285k in cash (after-tax savings - I keep the cancelled check) to buy the condo, and there was no mortgage. So, $285k is not taxable again anywhere for any reason. Only $100k capital gain is taxable at 15% to IRS, and I am looking at 13% California state tax (although the total tax will be less than that; that is only the marginal tax bracket). MA gives tax credit for what I paid in tax to CA, so I don't pay any tax for this transaction in MA. Thus, after about $30k tax , my net gain is about $70k, and I get back my $285k with which I bought the condo, which is a total of about $350k.
Don't forget the Federal income tax.
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just for starters, don't you miss the food diversity SoCal has to offer? (I'm a foodie that's why I ask 
). The good part is you left the meth capital of California behind 
