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Does anyone have a solid link to an explanation around California treatment of capital gains on a primary residence?  I am quite clear that gains under $500k are exempt from Federal taxes, but the California treatment is less clear.  I am trying to understand what to populate on the California...

My wife and I are considering some options to purchase a new home which contains the separate casita which my parents would occupy.  They are nearing retirement age, and we have carefully considered the social aspects of such an arrangement so I don't want to focus my topic to those questions...