As a California resident do I pay capital gains tax in Oregon

by Rob Seltzer, CPA, PFS

Q. I am a California resident and am selling a second home in Oregon for about $28,000 above the original purchase price. Do I pay capital gains tax in Oregon?

Since Oregon has personal income taxes, you will need to report this sale in Oregon. California, however, will allow you to take a credit for the taxes that you paid in Oregon. Because Oregon has rates that are a similar or a bit lower than those in California, you should receive full benefit for those taxes paid in Oregon. So the Oregon filing requirement and tax burden should not add additional tax cost for you. The only additional burden will be the filing requirements and the costs associated with filing an additional tax return.

Rob Seltzer is principal of Robert Seltzer, CPA, PFS, in Los Angeles. You can reach him at (310) 278-9944.

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