CPA/RE tax expert out of state owner question.

[Joel Fechik]

I have a client looking to sell a multifamily property in CA. She is an out of state owner and resident of PA. When she sells she'll have to pay federal and CA taxes on the sale, but will she also have to pay PA taxes on her sale?

[Bonnie Griffin Kaake]

@Joel Fechik - If you client has owned this property for a while, she might want to do a Tangible Property Regulation (TPRs) study before the sale or shortly thereafter to reduce her tax liability. This is about items that in previous years had to be capitalized that can now be expensed. This is a complex process but it very worthwhile and profitable for the client. 

Another option is a 1031 exchange into a property in PA as well as having the depreciation schedule scrubbed for TPR options. By doing this, items can be expensed. Estimates don't cost anything and make you the hero.