Taxable gains on investment property sale
Hamid M. of San Francisco, Ca. wants to learn more about paying taxes on the sale of an investment property.
Q: I purchased a house several years ago which I sold this year at a profit of about 50%. I live in California and the property is in Arizona. Do I owe taxes on the gain to the IRS, Arizona AND California too?
A: You do owe federal taxes on the gain you realized from the sale.
But often, states have rules and agreements that avoid double-taxation for such sales.
You should contact the tax offices for California and Arizona to learn more about their individual rules and regulations.
Got a tax question? Send it to us!
Q: I purchased a house several years ago which I sold this year at a profit of about 50%. I live in California and the property is in Arizona. Do I owe taxes on the gain to the IRS, Arizona AND California too?
A: You do owe federal taxes on the gain you realized from the sale.
But often, states have rules and agreements that avoid double-taxation for such sales.
You should contact the tax offices for California and Arizona to learn more about their individual rules and regulations.
posted by Scott at
9:38 AM
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