AboutIvan Roth Expertise Federal and State Income taxes I do tax returns for partnerships and C corporations I am well versed with State Franchise taxes for CA, CT, FL,NY,TN,TX.
Experience Eight years as tax manger for a real estate company
Expert: Ivan Roth Date: 7/6/2008 Subject: capital gains tax in california
Question my fiance and i just bought a condo in san diego. we bought it for $150,000 while it was in foreclosure. we are considering selling it to move back east. its worth about $230,000. we have only lived in it a few months. just say we make a profit of 60k, how would california apply the capital gains tax? ive been told that if you havent lived in your residence for at least 2 years, and you sell it, the government will tax 30% of your profit on the sale. but then ive heard in california that isnt the case. that they do it by your income. my finance is the only one on the loan and title of the place, and his income is only $39,000 right now. i was wondering if you could clear the confusion up for me, and possibly break down what would happen if we sold it and made a 60k profit? thanks so much, it would be such a big help!
Answer Hi Jamie Ca taxes any gains as ordinary income so it would aprox 6 to 7%
As far as the federal Tax if he
holds the property for more than one year he would be taxed at the long term capital gain rate of 15%(this may change in 2009) if he held the property for less than one year the gain would be taxed as ordinary income likely to be 25%
