I do not disagree with anyone or anything in this thread. The state tax *is* deductible on your federal return. But it is "NOT" deductible as a sales expense, nor does it change your cost basis in any way, form or fashion on your federal return SCH E. Please follow the guidance provided and heed the "read the small print" part as you work this sale through the SCH E section of the federal return.
Now CA has some of the quirkiest tax laws I've ever seen. If not asked for anything concerning this on the SCH E (I don't think you will be) then you'll deal with it *OUTSIDE* of the SCH E under the deductions and credits tab in the section for "Estimates and Other Taxes Paid" when you get to that section in the program. It will be a loooong time after you complete the rental property sale, before you will get to the "estimates and other taxes paid" section.
Also be aware that as it stands as of today (dec 31, 2019) you will be unable to report the rental property sale because the Assets section of the TurboTax program *is* *not* *complete* yet. It won't be complete either, until "AFTER" congress approves tax law changes that directly affect that section, and *AFTER* the IRS implements those changes once passed by congress.
