April 27, 2023

Selling Your House in California? Here's How to Avoid Capital Gains Tax and Keep More of Your Money

If you're planning to sell your house in California, you may be wondering how to avoid capital gains tax and keep more of your money. Capital gains tax is a tax on the profit you make when you sell an asset, such as a house.

In California, the capital gains tax rate can be as high as 13.3%, which can significantly reduce your profit from the sale of your home. In this article, we'll explore the ins and outs of capital gains tax and share some tips on how to avoid it when selling your house in California.

What is Capital Gains Tax?

Before we dive into ways to avoid capital gains tax when selling your house, it's crucial to understand what it is and how it works. Capital gains tax is a tax on the profit you make when you sell an asset. In the case of selling a house, it's the difference between the sale price and the original purchase price, minus any expenses associated with the sale, such as real estate agent fees, closing costs, and home improvements.

In California, the capital gains tax rate is based on your income and can be as high as 13.3%. That means if you sell your house for a profit of $100,000, you could owe as much as $13,300 in capital gains tax. However, there are ways to avoid or reduce capital gains tax when selling your house in California.

How Capital Gains Tax Affects Selling Your House in California

Capital gains tax can significantly impact the amount of money you make when selling your house in California.

For example, if you bought a house for $300,000 and sold it for $500,000, you would have a capital gain of $200,000. If you're in the highest tax bracket, you could owe $26,600 in capital gains tax, leaving you with a profit of $473,400.

Capital gains tax only applies to the profit you make on the sale of your house. If you sell your house for less than you paid for it, you won't owe capital gains tax. Additionally, if the house was your primary residence for at least two of the past five years, you may be eligible for an exclusion of up to $250,000 ($500,000 for married couples) on the capital gain from the sale of your home.

Ways to Avoid Capital Gains Tax When Selling Your House

If you're looking to avoid or reduce capital gains tax when selling your house in California, there are a few options to consider.

  • One strategy is to sell your house as-is. When you sell your house as-is, you're not making any improvements or repairs to the property, which means you won't be increasing the value of the home. This can be a good option if you're looking to sell quickly and don't want to invest a lot of time or money into the property.
  • Another option is to sell your house for cash. When you sell your house for cash, you're selling it directly to a buyer who has the funds available to purchase the property outright. This can be an attractive option if you're looking to avoid real estate agent fees, closing costs, and other expenses associated with a traditional home sale.

Selling Your House As-Is to Avoid Capital Gains Tax

Selling your house as-is can be a good option if you're looking to avoid capital gains tax when selling your house in California. When you sell your house as-is, you're not making any improvements or repairs to the property, which means you won't be increasing the value of the home. This can be a good option if you're looking to sell quickly and don't want to invest a lot of time or money into the property.

Selling your house as-is can also be a good option if the property needs a lot of work. If you're not in a position to make repairs or improvements to the property, selling it as-is can be a good way to get rid of the property quickly and avoid any additional expenses.

The Benefits of a Cash Home Sale

If you're looking to avoid capital gains tax when selling your house in California, selling your house for cash can be a good option. When you sell your house for cash, you're selling it directly to a buyer who has the funds available to purchase the property outright. This can be an attractive option for a few reasons.

  • First, when you sell your house for cash, you can avoid real estate agent fees, closing costs, and other expenses associated with a traditional home sale. This means you can keep more of the money from the sale of your house.
  • Second, selling your house for cash can be a faster option than a traditional home sale. When you sell your house for cash, you're dealing with a buyer who has the funds available to purchase the property outright, which means you can close the sale quickly.

Finding Buyers Who Offer Cash for Homes

If you're interested in selling your house for cash in California, you'll need to find buyers who offer cash for homes. There are a few ways to find these buyers. One option is to search online for companies that buy houses for cash. These companies typically have websites where you can submit information about your property and receive an offer within a few days.

Making the Most of Your House Sale in California

Selling your house in California can be a complex process, especially when it comes to capital gains tax. However, there are ways to avoid or reduce capital gains tax when selling your house. By selling your house as-is or for cash, you can keep more of the money from the sale and avoid real estate agent fees and other expenses.

Contact Our Cash Home Buyers in Riverside

If you need to sell your house fast but don’t want the hassle of a traditional home sale, contact Vista Buys Homes. We buy houses as-is. No repairs are needed. Avoid closing costs and realtor commissions. Close in as little as seven days. Call 909-818-0448 to get a guaranteed cash offer on your home from our local home buyers in California.

    Get Your Fair And Honest All-Cash Offer Today! No Obligations!


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