Legal Question in Tax Law in California

Capital Gains

Do I have to pay capital gains if I plan to purchase another home which is more expensive than what I paid originally for my first home? I bought it for 200k and now it's worth about 300k. I plan to purchase a new home for at least 400k. I currently live in my home for about 1.5 yrs. Thanks for your help.


Asked on 6/17/04, 1:46 am

1 Answer from Attorneys
Ken Koenen Koenen & Tokunaga, P.C.

Re: Capital Gains

There is no roll over provision regarding the sale of a primary residence. There is a $250K exemption from capital gains for the sale of a primary residence PROVIDED you own the property and live in it for 2 of the past 5 years. If you have only lived there for 1.5 years, you do not qualify unless you are moving because you have changed employment or for medical reasons.

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Answered on 6/17/04, 12:14 pm


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