Taxes Services

Capital Gains Tax

What is Capital Gains Tax?

Capital gains tax is a levy on the profit made from selling an asset, like a house. In California, this tax is a significant consideration due to the state's high property values. Capital gains are categorized into two types: short-term (for properties held for less than a year) and long-term (for those held for more than a year). The tax rates vary accordingly, with long-term gains generally taxed at a lower rate.

Rates and Implications

For short-term capital gains, the tax rate aligns with your regular income tax bracket. In contrast, long-term gains are taxed at either 0%, 15%, or 20%, depending on your income level. Additionally, California does not provide any special concessions for capital gains, meaning these gains are also subject to state income tax.

Get In Touch

For personalized advice, consider consulting a tax professional or a real estate attorney who can provide specific guidance based on your situation.

How Can We Help?

Contact us with any questions.

Give us a call
Send us an email