No. CA withholding tax on the sale of your home is the amount expected to cover any tax liability that may arise from that sale. The following are a list of sales expenses that will reduce the profit made on the sale of your home:
- Commissions
- Legal fees
- Broker fees
- Appraisal fees
- Advertising fees
- Home inspection reports
- Owner's title insurance
- Transfer taxes
- Geological surveys
- Any amounts the buyer agrees to pay for the seller, such as 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
- HOA fees
- Property taxes
As a reference please see:
Sale of your home IRS – Topic 701
Selling your home IRS – Pub 523
