Cap Gains And State Taxes For CA.
I'm new to all this. I've read many post, but am still confused.
Question: My boyfriend and I bought our primary residence together last Sept. Both names on title, both incomes required for lender to approve mtg loan. I lost my job in Oct. If we sell in the next month or so and relocate, obviously we will be under the 2 out of 5 year residence rule.
Do I understand correctly that if our net taxable profit (after RE comm. and improvements are deducted) is under $250,000 (for each) we will be exempt from capital gains taxes by way of the exclusion, due to my job loss? Can someone please clairify for me?
Also, does anyone know if the net taxable profit is taxed by the state of California and if so at what rate? ( I'm new to CA.)
I don't know if the structure of the loan matters...we did an 80-15-5
80% of purchase price is 5 yr. arm loan
15% is in form of HELOC and
5% was our down payment.
Thank you so much for your anticipated response. This is such a great site and everyone is so helpful!
I used to do high tech consulting and was told if the move is for work or health (other also?) reason the 2 of 5 would not apply.