Capital gains tax is what you are referring to.
There is also tax on cost recovery recapture (or depreciation)
Federal CG is 15% now - there is talk of that increasing
CA state maximum is 9.3% depending on your tax bracket and other factors.
Cost recovery recapture is 25% of depreciation taken over the holding period.
Of course you should talk to a CPA to see what your actual costs are. Also to see what methods to mitigate those costs may be.
1031 tax deferred exchange is one very good method to deferring those costs if you plan to keep your capital in real estate. - Thu Nov 19 2009, 11:44