What would be the capital gains tax on a home sale in Southern California?

Question by Chris: What would be the capital gains tax on a home sale in Southern California?
A home in Rancho Bernardo in San Diego. Sell it for 490K.

Best answer:

Answer by Flower
To be hit with the new tax, you would have to clear more than $ 250,000 in profit off your home, which means at least $ 250,000 more than you paid for it. And the ceiling is even higher for a married couple. Married couples are not taxed on the first $ 500,000 of profit from home sales. Again, that’s profit, not the sales price.

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1 Comment → “What would be the capital gains tax on a home sale in Southern California?”


  1. Mr Placid

    Oct 02, 2013

    Well, first of all you need the cost basis of the home. You need that to determine total profit, because you are taxed on the profit, not the sale price.

    Then, after you calculate the profit, you may be entitled to an exemption of a portion of the profit. Depends on the answers to the following questions:
    1. Did you occupy the home as your primary residence for at least two of the previous 5 years?
    2. Did you own the home for at least two of the previous 5 years?

    Read IRS Publication 523.


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