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Kali

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Posts: 85
Reply with quote  #1 

Hello All,

 

I have owned a commercial property in Texas and I am considering selling it. If I am a resident of California (possibly might change to Texas) and have owned this property for under 2 years what is the capital gains?  I have heard from some people it is 15% from others I have heard 24%.

 

If I want to cash out on this property, anyways to minimize the loss?  Profit might be about 1 million dollars after paying off current note.

 

Thanks.

taddyangle

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Reply with quote  #2 

Call your CPA.

 

California residents pay a state tax.

 

Texas residents do not pay a state tax.

 

We all pay a federal tax.

 

Interesting.....move to Tx to avoid the CA state tax (or in your case about $80k)?  I think this tax avoidence technique sounds like a great idea, run it by your CPA (Geoffrey, what do you think?).

 

 

Why not 1031 or PAT? 


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Jeff

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Reply with quote  #3 
Quote:
Originally Posted by Kali

Hello All,

 

I have owned a commercial property in Texas and I am considering selling it. If I am a resident of California (possibly might change to Texas) and have owned this property for under 2 years what is the capital gains?  I have heard from some people it is 15% from others I have heard 24%.

 

If I want to cash out on this property, anyways to minimize the loss?  Profit might be about 1 million dollars after paying off current note.

 

Thanks.

Federal is easy...

 

http://www.bankrate.com/brm/itax/tips/20010305a.asp

 

California I didn't know the answer to right away...but this quote "There's no capital gains tax rate in California, everything is taxed as ordinary income," is from an article http://taxes.about.com/b/a/257223.htm you might find interesting.

 

It is amazing the questions the Internet will answer if you give it a chance...

 


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