Updated about 10 years ago on . Most recent reply
California taxes on sale of rental property
We sold a rental in Sac. California and were just told by the escrow company we have to pay 3.3% taxes to California because we live in FL and the property was not our primary residence. This 3.3% comes off the total amount of the sale $325,000.
Very new to this business and I am confused as to why we pay on the full amount of the sale and not our actual profit after depressation and repairs. Any help would be very much appreciated.