Capital gains

[Sb581]

Do you have to pay capital gains federal or state in California when you sell your primary home? Thanks

[drc845443]

Both the Federal and the state require you to pay tax on taxable capital gains when you sell your personal residence.

However, depending on your situation, you may not have taxable capital gains as you may qualify to exclude the gains from the sale of your home (up to $500,000  for married couples and up to $250,000 for other filers). To qualify to exclude the gain, you have to meet certain conditions. These conditions are outlined in the link below:

https://www.irs.gov/taxtopics/tc701