I owned a home in Nevada for 25 years. The last 16 months of ownership, I was living in California and renting this Nevada home to my tenant. I sold the home in 2019. I am eligible for the "exclusion of gain" both federal and California, as I lived in the home for more than 2 of the last five years. When I check the box "The item was sold, retired, destroyed ....." and enter the "Date you Sold" in the "Rental Asset" section of "Your Property Assets" section, TT adds the net gain of the sale to "Net California Adjustments" line, and increases my “California Taxable Income” by that amount. TT also increases the "Federal Adjusted Gross Income" by the "2019 Estimated Expense for this asset”. The net gain of the sale of this house should not be added to my “California Taxable Income”.
Two questions:
- What am I missing?
- Why is the “2019 Estimated Expense for this asset” also being added to the "Federal Adjusted Gross Income”?
Thank-you.
