California Form 593 Help

Forum|Forum|4 months ago
March 16, 2026
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Form 593 has 2 questions I don't know how to answer. This is the background... I inherited a house in 2017. My father had lived in it for 4 years (principal residence). After he passed away, I refinanced it, then rented it from 2017 to present. The following questions, well, I've been getting various answers on whether to check one or both or none of the boxes. just Answer gave me to different answers from 2 different people. Escrow closes today so need immediate help, please.

Part III Certifications which fully exempt the sale from withholding (See instructions)
Determine whether you qualify for a full withholding exemption. Check all boxes that apply to the property being sold or transferred.
1. • The property qualifies as the seller’s (or decedent's, if sold by the decedent's estate or trust) principal residence under Internal Revenue
Code (IRC) Section 121.
2. • The seller (or decedent, if sold by the decedent's estate or trust) last used the property as the seller’s (decedent's) principal residence
under IRC Section 121 without regard to the two-year time period.

Monikak11

Level 2

If you have been using the inherited house as a rental property since 2017, then you do not qualify for a full exemption from withholding under the provisions of Section 121. You would have to have lived in it as your personal residence for two of the last five years.

See this help article for instructions to enter the form 593 on your 2026 tax return assuming that you will receive it this year.

See this tax tips article for more information about tax aspects of home ownership and reporting the sale of a residence.

See this help article for information on reporting the sale of a rental.