For most relocating families the California home is the largest asset they own, and years of appreciation mean the sale carries real tax consequences. Handled well, that equity buys a better Nevada home outright and leaves a cushion. Handled badly, it leaks to withholding, capital-gains tax and a double move. Here is what to get right.
1. Know your gain before you list
Gain is sale price minus selling costs minus your adjusted basis (purchase price plus capital improvements). The federal primary-residence exclusion shelters $250,000 single / $500,000 married of that gain. Anything above is taxed federally as long-term capital gain and by California as ordinary income at up to 13.3%, because the property is in California. Moving to Nevada first does not change that — but it does mean every dollar you earn after the move is untaxed by the state, which is why sequencing matters.
2. Understand the 3⅓% withholding
If you are no longer a California resident when escrow closes, the escrow company withholds 3⅓% of the gross price and sends it to the Franchise Tax Board. On a $1.2 million sale that is $40,000 held until you file. You can elect to withhold on the actual gain instead (Form 593), or close before you change residency. Your CPA will pick the order; Ron makes sure the Nevada purchase fits it.
3. Sell first or buy first?
Sell-first is safer on paper and worse in practice: it usually means temporary housing, storage, two moves and buying under time pressure. Buy-first works in Nevada because inventory is healthy, new construction closes on predictable dates, and some buyers can carry both payments or bridge against their California equity; ask your lender what you qualify for. A contingent offer on the Nevada side is also far more accepted here than in coastal California. The right answer depends on your equity, your financing and your risk tolerance; talk it through with Ron and your lender.
4. Prop 13 doesn't travel — but Nevada's property tax is lower anyway
Long-time California owners often hesitate because their property tax bill is tiny. Prop 19 lets you carry that basis to another California home if you're 55+, but not across the state line. The good news: Nevada's effective rate of roughly 0.5–0.6% with a 3% annual cap on primary residences means a $700,000 Henderson home costs about $3,500–$4,200 a year — usually less than the California bill on a house bought in the last decade, and not far above one bought in the 1990s.
5. Keep it or sell it?
Keeping the California home as a rental keeps a foot in California: taxable rental income, an annual non-resident return, and a residence you "visit", which is the first thing a residency auditor asks about. It can still make sense if the mortgage is very low and the rent is strong. Treat it as an investment decision, not a sentimental one.
How Ron coordinates both sides
Ron is licensed in Nevada and Hawaii. For the California sale he refers you to a vetted listing agent in your market, then runs the two timelines together: your Nevada offer and closing date are set against the California listing so you never carry two homes longer than you want to. See the full 120-day checklist, or tell Ron your situation.
Selling questions
Will I owe capital gains tax when I sell my California home?
Federal law excludes $250,000 of gain (single) or $500,000 (married filing jointly) if you've owned and lived in the home two of the last five years. Gain above that is taxed federally at long-term capital-gains rates, and California taxes it as ordinary income at up to 13.3% — regardless of where you live when you sell, because it is California-source income.
What is California's 3⅓% withholding?
When a seller is not a California resident at closing, the escrow company must withhold 3⅓% of the gross sale price (or an elected amount based on gain) and send it to the Franchise Tax Board. It is a prepayment, not an extra tax; you reconcile it on your California return. Many clients time closing to avoid it, or file Form 593 to withhold on actual gain instead.
Can I take my Prop 13 tax basis to Nevada?
No. Prop 19 lets homeowners over 55 transfer their low assessed value to another California home. Nevada assesses your new home at its own value, but at a lower effective rate (about 0.5–0.6%) with a 3% cap on annual increases for a primary residence.
Should I keep the California house as a rental?
Sometimes, if the mortgage is very low and the rent is strong. Remember that California will still tax the rental income, you'll need to file a California non-resident return every year, and a California property you visit weakens your residency case. Run it as a pure investment decision with your CPA.
Can Ron sell my California home?
Ron is licensed in Nevada and Hawaii, not California. He refers clients to a vetted California listing agent, coordinates the two timelines and handles the Nevada purchase so the sale and the buy close in the right order.