Capital gain on residence

[Garby]

What is the name of your state?What is the name of your state?What is the name of your state? California

We have lived in our CA home for over 30 years, and have a million dollar or so cap. gain if we sell right now.
I know we have to pay federal tax on almost a half million.
What happens if we were to move to Washington State in 2005 (it has no income tax)? Would we avoid the CA capital gain tax of 9.3% times $500k because we no longer live in CA when it's time to file our 2005 tax return?
Looking at the Oregon tax website, it appears that Oregon (that has a state tax) would collect the tax on the sale of the CA home.
Thanks in advance for your responses.

 

[Snipes5]

California will collect the tax no matter where you live, and if you live out of state, they will take the money off the top (30%) and you will have to file a tax return to get back what you don't owe them.

Snipes

 

[Garby]

OK, I guess we can't avoid the tax.

Is it feasible to do an "installment sale" (given a cooperative buyer) where, for example, we sold the house but carried the loan for half of the sale price into the next calandar year? By breaking up the cap gain over two years (maybe more?) our tax liability would be greatly reduced.

 

[Snipes5]

Yes, it's feasible. But since you are looking at $1M profit, you really want to pay the couple hundred bucks for sound tax advice from a competent professional.

Snipes

 

[Garby]

Thanks, Snipes.

Which professional would be the most appropriate:

tax lawyer, real estate lawyer, or CPA?

 

[Snipes5]

Enrolled Agent.

Snipes