I think this is out dated.  THis is required by the state and needs to placed somewhere

The info is not outdated ... the  state withholding is entered in the federal section and will be carried to the state automatically.  

Look in the Deductions & Credits section ...  

With real estate we can not do efile with California? 

We solved the problem with some advise from TurboTax, we did use efile and the returns are complete and accepted.

I am getting the same message from TurboTax that because when I sold the property the escrow company just withheld 3.33% of the sale.  Can I efile if I did not get a form 523 or whatever it is that lists real estate witholdings?

Yes, you can e-file and you can enter the amount of tax withheld as long as you know the dollar amount.

Here is how to enter it:

1. Select Federal, then Deductions and Credits.
2. Scroll down/ expand the list and find Estimates and Other Taxes Paid.
3. Select Other Income Taxes.
4. Scroll and select Withholding not already entered on W-2 or 1099.
5. Answer the question Yes and Continue.
6. Enter your federal tax withheld and/ or select a state and enter state tax withheld.

Make sure you know what type of tax was withheld, this is for income taxes only.