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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15711
Experience:  15years with H & R Block. Divisional leader, Instructor
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I am selling a rental house in CA and using the capital gains to buy an investment propert

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I am selling a rental house in CA and using the capital gains to buy an investment property in TX. Will CA take taxes out? If so, what percentage? What are exemptions to the rule?

Robin D :

Hello and thank you for using Just Answer,

Unless you can show that you will have a loss on the sale, the sales price is below $100,000 or that you are using the 1031 Exchange the withholding will apply in California.
Here is a link to the California guidelines if you would like to read them

Thank you in advance for a positive rating even though I am sure you were hoping for a different answer.

Robin D :

You asked for the rate.

What is the withholding rate?

The withholding rate is 3 1/3 percent of the total sale price, or an optional gain on sale withholding based on the maximum tax rate on the gain on sale as follows:

• 9.3 percent for individuals.

• 8.84 percent for corporations.

• 10.84 percent for banks and financial corporations.

• 1.5 percent for S corporations.

• 3.5 percent for financial S corporations.

Robin D :

Please let me know if you need more information. Customer Last Viewed Today at 12:56

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Customer Last Viewed on Saturday, September 01, 2012 at 12:56

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