What is the california capital gains tax rate applied to the sale of a primary residence after the expemtions are taken? thanks
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marc777
ANSWERS: 1
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Hopefully this will answer your question this is an example if $500,000 selling price $200,000 intital mortage cost $300,000 gross profit $250,000 exemption per person if you lived in the house 2 out of the last five years $50,000 profit subject to tax $6,500 for the cost of sale ie agent escrow $43,500 net subject to capital gain which is between 15 and 28 % depending on you annual net income. its best to consult your accountant or your tax preparer to find out which category you fall under (note if the deed had both you and your wifes name on it using the above example the exemption would be $500,000 well over the gross profit so there would be no captial gain to tax
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