Hi @24bLackBirdz !
CA conforms to the IRS rules for home sales for recognizing any capital gain. Currently the exclusion amount is $250,000 if filing as single, and $500,00 if filing married jointly. The capital gain is any amount you receive over the amount that is your basis in the property. Your basis is calculated by the amount you paid for it minus any depreciation you've claimed, plus various items that can increase basis. This can include improvements, certain settlement charges and fees when both buying and selling, and other items. Here is some guidance on calculating your home's basis:
https://www.irs.gov/faqs/capital-gains-losses-and-sale-of-home/property-basis-sale-of-home-etc/prope...
If you buy another business property to replace a business property you could qualify for a like kind exchange and defer tax. The rules are very strict and can be found here:
https://www.irs.gov/pub/irs-news/fs-08-18.pdf
Hope this helps!
Cindy
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