Subject: Market timing and tax timing advice
Date: Mon, 02 Feb 2004
I think your advice to wait until the end of the year to sell California real estate is a little scary. The delay of a few weeks in selling a house can make the difference in tens of thousands.
Date: Mon, 01 Mar 2004
You are right. The tax tail shouldn't wag the dog. Some people have written to me that the California withholding from the sale of real estate is creating a financial hardship. When the sale is made at the end of the year, the seller may be able to recover an overpayment in a short time by claiming a refund on his or her California income tax return. People who are selling California real estate should get a projection of their cash position when they sell, and make the best decision for their circumstances. (Remember most sales of principal residences aren't subject to withholding.)
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