The CA 593 is filed with the state at close of escrow. It certifies that no withholding of proceeds for taxes is necessary based on IRS criteria under 121. So, no taxes owed. A 1099-S is issued which shows a sales price below the threshold so even if the sales price was all capital gain it still wouldn't be taxable under 121. Since we had filed the 593 with California, I hoped to avoid filing 2 state income taxes. The Federal Turbo Tax return did ask for the sales price and basis confirming that no taxes were owed.
