NR of CA, rented for 7 yrs with loss, lived for 3 1/2 yrs. Federal says I can take exception of up to 10 years. CA 3/5 years, but still have loss. Rec. 1099S and CA 593. Couple of questions:
1. Did Federal on-line had me do a 4797 for sale of asset, huge loss. Is that where I put the sale since, I am qualified to do an exception of 7 years and qualify for no capital gains over $500,000 MFJ?
2. California - always a lost, had all taxes done at block, and since we always had a loss we never filed NR CA State. Last year renters moved out, after several months getting it fixed back up, sold. Escrow file a CA 593 taking out taxes. Even with CA rules, we still have a loss, how do I get the $$$ back that they took at escrow?