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I am planning to move to Texas early 2018. If I lease my California principal residence for 9 months, while waiting for my new home in Texas to be built, and then sell the California house 9 months later, will I pay Texas capital gain tax or California capital gain tax? I anticipate to make a huge capital gain tax on California residence (approx. $700,000) and I can only shelter $250,000 as a single tax filer.

Brythan
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cf2017
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I can't give tax advice and you should speak with a tax professional. You may also want to work with a financial planner to review your overall financial situation (particularly if you have unrealized losses in other investments). You may find the following information from the California Franchise Tax Board website useful:

"The gain or loss from the sale of real estate has a source where the property is located. If you sell your California real estate and move out of state, the gain is taxable by California. The gain is taxable by California even if the real estate is sold when you are a nonresident."

Source: https://www.ftb.ca.gov/individuals/fileRtn/Nonresidents-Part-Year-Residents.shtml#RealEstate

Charles Fox
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