Question

House sale in California

Forum|Forum|5 years ago
February 1, 2021
1 reply
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Hello,

We are selling our home in California, and will have capital gains of approximately $147,000. I know that the exemption for Federal is $500,000 married filing jointly. Will there be a capital gains tax of the sale in California, or does California follow the same rules as Federal?

Thank you.

E

ErnieS0

California conforms federal rules for the exclusion of gain from the sale of a primary residence and allows, up to a certain amount, the exclusion of gain you make on the sale of your home. You may take an exclusion if you owned and used the home for at least 2 out of 5 years.

Married/RDP couples can exclude up to $500,000 if all of the following apply:

Your gain from the sale was less than $500,000
You filed a joint return for the year of sale or exchange
Either spouse/RDP meets the 2-out-of-5-year ownership requirement
Both spouses/RDPs meet the 2-out-of-5-year use requirement
Neither you nor your spouse/RDP excluded gain from the sale of another home in the last 2 years

Any gain over $500,000 is taxable.

Refer to Income from the sale of your home

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