I have looked at California FTB documents and confirmed that CA follows federal methods for tracking installment sales of property. However, I don't know how to get @turbotax to complete my CA return correctly and show the tax I owe. I received $25,000 principal in 2024 and the buyer withheld 3.33% from the payment (per CA law). According to my calculation I would be in the 9.3% tax bracket, so I should owe 5.99% on the $25,000 principal received, or $1,497.50. So, I don't know why TurboTax says my CA tax is $0.
I also have a tax question on the interest received: do I owe CA tax on interest received on the note, even if I am a non-resident? Also, are my calculations above correct? If I don't get an answer back from TurboTax by the filing deadline I will submit a payment to FTB to avoid penalties.
