I really can't add anything, as from my perspective the CA tax rules are just as convoluted as NY. I really don't have a clue how CA would treat the gain, other than to say I know they will tax it. As for the depreciation recapture, while I would expect CA to treat that separately when it comes to the maximum tax rate, I can't say I'm definitive on that assumption or that the state would tax it under the same rules the IRS does.
