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Updated almost 9 years ago on . Most recent reply

User Stats

160
Posts
35
Votes
Samuel DeMass
  • Investor
  • Albuquerque, NM
35
Votes |
160
Posts

California State sales tax on property?

Samuel DeMass
  • Investor
  • Albuquerque, NM
Posted

I have a friend who is selling a condo in San Diego and they told me they are being hit with what they called a "State sales tax" that amounts to about 3% of sales price!

To be clear, this is something separate from capital gains tax, from the information I understood.

Having not operated in California, I can't speak to it, but it sounds absurd!

Is there any knowledge out there that enables avoiding this tax?

Any thoughts or tips are appreciated.

Thank you for your time.

-Sam

Most Popular Reply

User Stats

180
Posts
72
Votes
Ron Drake
  • Investor
  • San Diego, CA
72
Votes |
180
Posts
Ron Drake
  • Investor
  • San Diego, CA
Replied

They are talking about the Franchise Tax Board for Calfirpta withholding. It is 3 1/3% of the sales price for individuals on non principal residence. It doesn't apply to partnerships, corps or LLCs.

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