Retirement tax questions

Sales tax?  You mean like the extra 6% on a bag of potato chips?

 

Do you mean capital gains tax?  Sometimes in the state of California, the closing agent is required to withhold capital gains tax on the sale.  When you report the sale on your California tax return, if the tax that was withheld is more than you owe, you get a refund.

https://www.ftb.ca.gov/pay/withholding/real-estate-withholding.html

 

When you sell an inherited home it is likely that you owe no capital gains tax to either the IRS or California, but California makes you do the extra paperwork.    This would be a state and local income tax deduction on your federal return, but it is limited by the $10,000 cap on all state and local taxes (the SALT cap).  

 

Can you clarify the circumstances?