Home Buying in 92651>Question Details

oysterf16, Home Buyer in Laguna Beach, CA

what are capital gains taxes in Ca? long term ownership...

Asked by oysterf16, Laguna Beach, CA Fri Jun 28, 2013

selling single family home for $2m, and bought in 2005 for $1.2m

Help the community by answering this question:


Realtors do not have professional expertise on tax matters, and are thus not qualified to give tax advice. Note in particular, the recommendation that you can "re-invest it in your Principle Residence" and postpone the taxes; this suggestion may have been obsoleted in the 1990s. Much of the "analysis" in the general press is highly misleading, written to promote a self-serving agenda; the best source of objective information is probably http://www.ftb.ca.gov, particularly https://ftb.ca.gov/forms/2012/12_540d.pdf for Schedule D and instructions, and https://ftb.ca.gov/forms/2012/12_540cains.pdf on page 3 for explanation of differences between CA and federal law. In general, capital gains are taxed at the full income tax rates and in most cases have the same exemption as federal tax.

Bill Sundin
Prudential CA Realty, Laguna Beach
(949) 394-4659
1 vote Thank Flag Link Fri Jun 28, 2013
Hi Bill,

How nice to see you on here. I hope you're doing well!

Flag Tue Jul 9, 2013
Add on top the Obama 3.8% tax, if it is not repealed to cover Obamacare. If you have “unearned income” in excess of $200,000 adjusted gross income for single taxpayers or $250,000 for married couples.

I wrote about it here: http://cgbarbeau.blogspot.com/2013/06/obamacare-tax.html/

This tax is being fought, but no idea if it will be changed. This is not tax advice. Others gave some great direction above.
0 votes Thank Flag Link Tue Jul 9, 2013
Bill Sunden, you provided excellent information.

Birgit O'Hearn, Realtor
email: birgit.homesales@gmail.com
Cell: (949)463-7955
Keller Williams Realty
BRE# 01886700
0 votes Thank Flag Link Fri Jun 28, 2013
Not any longer, Ron. Those were the good old days. ( Reinvesting your equity, as you move up.)
0 votes Thank Flag Link Fri Jun 28, 2013
I think I heard that if you keep re-investing it in your Principle Residence, that you will just postpone the Taxes until you are old and febile.
If you take it out, you would have a $500,000 deduction, if you are married.
Don't rely on amateurs for Tax advice; at that level you should have a good tax person.
0 votes Thank Flag Link Fri Jun 28, 2013
Assuming the house has been a personal residence, you are entitled to a one time capital gain exclusion of $250k as an individual, or $500k as a couple. Then, add up your costs to sell, AND your costs to purchase, along with any improvements you've made during your ownership, and those factors should total up to a healthy reduction of your eventual gain.

Once you have a total dollar amount that will be taxable, the rate will depend upon your individual tax bracket, as explained here:


I hope that helps. Bear in mind, this is the opinion of a lay person with regard to taxation. Your question will be BEST answered by a tax professional, not a Realtor.
0 votes Thank Flag Link Fri Jun 28, 2013
there are so many variables it's best to speak with your accountant. I can only help you with the sale of your property, but know some accountants that you can speak with if you don't have one of your own. If you aren't listed already, I can send you comps for your home, and see where you are at so you have a package to give your accountant.

Lori Hanson
0 votes Thank Flag Link Fri Jun 28, 2013
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