Home
Tax Articles
Tax FAQ
Introducing Our Firm
Our Services
Real Estate Taxletter
Need Help?
Other Websites
Site Map

Find us on Facebook
Follow me on Twitter
Connect on LinkedIn
Connect on Google+

Are home proceeds treated differently for out-of-state owners?

March 5, 2003


Subject:  California home sale by an out of state seller
From:  Richard
Date:  Wed, 29 Jan 2003

Is there special consideration of home sales proceeds for a California home which is owned and subsequently sold by out of state residents?

My friends in this predicament live in Nevada.

They are in the process of selling their "second home".

Thanks
Richard

Answer

Date:  5 Feb 2003

Hello Richard,

A sale of real estate located in California is subject to California income tax and should be reported on a California income tax return. California gives no "break" for long-term capital gains. They are taxed at the same rate as ordinary income - up to 9.3%! In addition, California has enacted withholding at a rate of 3 1/3% of the sales price for the sale of most real estate that applies to both residents and non-residents.

Good luck!
Mike Gray

We have more answers to frequently asked real estate tax questions! We also offer up-to-date information about new tax real estate tax developments in Michael Gray, CPA's Real Estate Tax Letter.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained on this website was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.

Are home proceeds treated differently for out-of-state owners?

Home | Real Estate Taxletter | Articles | FAQ | Introducing Michael Gray, CPA | Need Help? | Other Links


Michael Gray, CPA
2190 Stokes St., Suite 102
San Jose, California 95128-4512
(408) 918-3162
Fax (408) 998-2766
email: mgray@taxtrimmers.com
© 2016
Subscribe to
Michael Gray, CPA's
Real Estate Tax Letter
!

subscribe
unsubscribe