Does anyone have a solid link to an explanation around California treatment of capital gains on a primary residence? I am quite clear that gains under $500k are exempt from Federal taxes, but the California treatment is less clear. I am trying to understand what to populate on the California form 593-C and withholding against the sale proceeds. I have found multiple explanations relating to exemption from withholding, but it does not seem to speak to the topic of whether or not a tax liability has been created by the capital gain. By my calculations I have ~$125k on sale of my primary residence (held over the last 4 years). Any thoughts greatly appreciated.
Capital Gains on primary residence
- Thread starter OCHouse99
- Start date
NEW -> Contingent Buyer Assistance Program
usctrojancpa
Well-known member
CA, for the most part, follows the Federal rules when it comes to the gain exemption of selling a primary residence that you have owned for 2+ years. You should not have any state tax liability on the sale of the home.
