Legal Question in Real Estate Law in California

It depends on what you do with the money I believe. I think that if you leave the money "off shore" you are not immediately taxed. This is why big insurance companies and investment banks park money off shore and even negotiate special tax break deals to bring it home, since the government wants the tax windfall and is willing to cut deals to get it. Unfortunately they won't cut a deal for the taxes on $200k. The bottom line, though, is that a tax accountant can answer or question better than a lawyer, because they can look at your whole tax picture and recommend your best tax minimization options.