All Forum Posts by: Michael Fuhrman

Hi William,

Assuming you are a resident of California you will report income from all sources to CA, pay tax on it based on CA rates and get a credit for taxes paid to any other states. Texas does not have income tax (or capital gains tax), and CA has no special tax rates for long term capital gains so the gain on the Texas rental property would be taxed at your CA marginal tax rate which can potentially be as high as 13.3%. You can look at the 2016 California tax rates here: https://www.ftb.ca.gov/forms/2016-California-Tax-R....

Michael

My name is Michael and I'm a Certified Public Accountant and Realtor in Santa Barbara, CA. I focus my CPA practice largely on real estate investors and am an investor myself. I have been enjoying the podcasts and look forward to utilizing the BiggerPockets community to further my knowledge as I ramp up my own real estate investments.