Tax Planning Tips

Real Estate Broker/Owner with eDrake

Real estate info & tips:Tax Planning Tips Claim Your State of Residency with Care Suppose you own and use two homes, one in California and one in Nevada, during a part of each year. Because Nevada has no state income taxes, you have been claiming Nevada as your state of residence by saying that you reside in your Nevada home the majority of each year. When you sell your California home, the gain is not excludable because it is not your principal personal residence. To exclude the California gain, you must use the California home as your principal residence at least two of five years. State tax returns should match that claim.

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