California treats profits from the sale of a residence as ordinary income, rather than long-term capital gains, and subjects them to higher state tax rates (up to 13.3%). While California generally conforms to the federal exclusion ($250K/$500K) for primary homes, it does not distinguish between short-term and long-term gains, taxing all profits immediately.
See this California Franchise Tax Board webpage for more information.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
