@anonymous-fin wrote:
From what I've read online, CA treats the capital gain on a rental property as ordinary income. Also see Tom's response below. I was hoping somebody could help confirm.
According to this, CA does not have a lower capital gains rate.
https://www.ftb.ca.gov/file/personal/income-types/capital-gains-and-losses.html
However, you will still pay the lower capital gains rate on your federal return, and you don't pay FICA, so your original estimate is incorrect. Your total tax is likely to be 15%-18% federal (if you are in the 24% bracket for ordinary income, your recapture is 24% and the rest of the capital gains is 15%) and 10% CA. No FICA.
