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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7147
Experience:  Extensive Experience with Tax, Financial & Estate Issues
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If I owned a house for fifteen years and rented it out for

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If I owned a house for fifteen years and rented it out for the last five years while I rented a house in a new city then sold the house and used the money to buy a new house. How much of the hundred thousand I made in capitol gains would I have to pay in taxes? House is in California.

Hello, my name is***** goal is to give you a complete & accurate answer. I am working on your request now & I will respond as soon as possible.

It's difficult to know exactly without the actual numbers, but between the federal & CA capital gains taxes somewhere between 25% - 30% of the gain.

Steve G.

Customer: replied 5 months ago.
I don't think your answer is complete. I didn't get anything out of it.

Well I'm sorry about that, but unfortunately you didn't or don't yet have your figures for the year that you are going to sell the property.

Have you figured in 5 years of depreciation in your 100K gain.

As I said, here's what you are most likely facing:

15% federal capital gains tax = $15,000.

9% CA tax (there's no capital gains tax rate in CA) = $9,000.

So, that's 24% of the 100K or $24,000 total.

If your income is high, then your capital gains rate can be 20% or $20,000.

CA would stay the same at $9,000.

So that's 29% or a total of $29,000.

Reinvesting the proceeds does not save you anything anymore because the rules have changed and eliminated that option.

You don't qualify for the primary residence exclusion because you haven't lived in the home for 2 out of the previous 5 years ending on the date of sale.

I don't what else I can tell you based upon the facts as you presented them.

All I can do is answer based upon the information you provided.

Maybe this will help clarify things for you.

Don't shoot the messenger.

Thanks very much,

Steve G.

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