Thanks Kris. Let me try once again to clarify, using numbers that make more sense.
Non-CA resident wife, was made JT on aunt's CA home back in 2006. (My sincere apologies... I didn't think about including this JT info in first post. Just realized that. It was all in another post about figuring the cost basis formula.)
Aunt passed in 2021. Wife sold house less than 6 months later.
In the Seller's Agreement, say $30,000 was withheld for CA Withholding Tax by the Franchise Tax Board.
Properly figured wife's cost basis with help from Community on formula.
Filling out CA tax form 540NR (may not be what I need...??) in TurboTax, after having entered home sale information in Federal portion, seems to indicate she will get refund of $20,000.
Trusting the cost basis was done correctly on Federal return and TurboTax doesn't make mistakes, it seems the original amount withheld was over estimated, probably based on full sale price vs cost basis adjusted net of sale... or some other value. That is what I'd like to be more clear on, assuming the refund is correct.
This is not an inheritance tax, as I understand it, but a capital gain on my wife's portion of the sale of a house held in joint tenancy where the other JT has passed.
I hope that's clear enough. I'm just looking to see if it's feasible that she should be getting that refund.
I had a CA CPA we used last year for the aunt's return, indicate that any 'Franchise Tax' would be refunded but I don't know if this is considered a Franchise Tax per se. And if so, I don't think my wife is exempt because she is a non-resident selling a second home, although we never lived in the home... but she has been JT for 15 years prior to selling. Sorry, I may be dwelling too much on the Franchise Tax thing, which may not be relevant I have no idea! LOL
I'll stop there.
