I sold my house and they took state taxes from my proceedsCan this be added to the expense amount for the house

Forum|Forum|4 years ago
February 7, 2022
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Mike9241

Level 15

no. it is a state income tax deduction reportable on schedule A (Federal) and as a credit on your state return.

Mike9241

FangxiaL

Level 10

It depends on what taxes were taken out from the sales proceeds.

Here is a list of items that are included or excluded from sales expenses:

Sales expenses include:
- commissions
- appraisal fees
- broker's fees
- legal fees
- advertising fees
- home inspection fees
- title insurance
- transfer taxes or fees
- geological surveys
- loan charges (points) or other fees paid on the buyer's behalf
Sales expenses do not include:
- mortgage payoffs
- home equity loan payoffs
- rent-back costs
- payoff to creditors
- property taxes
- homeowner association fees

If the taxes taken out for your state is income tax withheld, make sure to enter it on your tax return so that it can be credited to you.

@mmbirchfield

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VolvoGirl

Level 15

What state? Is it california?

It’s not a sales tax. It is withholding like from your paycheck. You will enter it into your CA return and get credit for it. You might even get a refund.

There is a mandatory 3.3% California State withholding tax on rental real estate sales on form 593.