Have a Tax Question? Ask a Tax Expert
Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.
Are you referring to the 3.8% sales tax that could be imposed on certain real estate transactions?
The 3.8% property tax only applies to individuals with over $200,000 in AGI or couples with over $250,000 AGI
The tax would be the lesser of the investment income (capital gain) or the amount by which income exceeds the AGI limits
Based on your scenario, I would agree with your escrow agent. You are not required to pay this tax.
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I was referring to the three and one third percent withholding required in California upon close of escrow except for those who are exempt. Within the last 5 years the total time that our late mother lived there plus the time my sister lived there was almost 2 years.