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1337ivan
New Member

Where do i input the tax that i paid to California when i sold my rental property? I paid a percentage to the tax board at the sale date. Where to put that in my taxes?

 
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3 Replies
DianeC958
Expert Alumni

Where do i input the tax that i paid to California when i sold my rental property? I paid a percentage to the tax board at the sale date. Where to put that in my taxes?

If you made estimated tax payments in 2019 towards your federal, state, or local taxes, enter them in the Estimated and Other Income Taxes Paid section.

  1. With your return open, search for the term estimated tax payments.
  2. Select the Jump to link.
  3. Choose Start next to the type of estimated tax payment you'd like to enter.
  4. Enter the amount of estimated tax you paid at each of the quarterly due dates.
    • If you paid 2018 estimated taxes in 2019, you'll enter just one amount for each state of locality.
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1337ivan
New Member

Where do i input the tax that i paid to California when i sold my rental property? I paid a percentage to the tax board at the sale date. Where to put that in my taxes?

I think it was a sale tax. Its the tax i paid at closing.

BarbaraW22
Expert Alumni

Where do i input the tax that i paid to California when i sold my rental property? I paid a percentage to the tax board at the sale date. Where to put that in my taxes?

If tax was withheld and reported to you on a Form 593, Real Estate Withholding Tax Statement or other statement, this is income tax, not sales tax. Per the Franchise Tax Board, real estate withholding is a prepayment of income tax due from the selling of California land or anything on it (real property). Please see the steps below to enter this information in TurboTax.

 

If this was real estate taxes reported as paid by you on your settlement sheet at closing, this would be reported as an expense on your Schedule E. 

 

To report income taxes withheld on the sale of your property: 

 

  1. Log into TurboTax & click on any topic to continue to your return
  2. Click on Federal from the menu on the left-hand side of the screen
  3. Click on Deductions and Credits at the top of the screen
  4. Scroll down to Estimates and Other Taxes Paid and click on "Show More" (You may need to click on "See all tax breaks")
  5. Click on "Start" or "Revisit" next to Income Taxes Paid and then select "Yes" 
  6. Scroll down to Other Income Taxes Paid in 2019 and click on "Start" or "Revisit" next to Withholding not already entered on a W-2 or 1099 
  7. Enter the amount withheld for the sale of your property in the "State Withholdings" section

 

To report real estate taxes paid on the sale of your property:

 

  1. Click on Wages and Income at the top of the screen
  2. Scroll down to Rental Properties and Royalties (Sch E) and click on Edit/Add. Then select Yes
  3. Continue until you get to the Rental and Royalty Summary and click Edit
  4. Click on Start or Update next to expenses and then select "I'll choose what I work on"
  5. Enter the amount paid in the box next to "Real Estate Taxes"

 

@1337ivan

 

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