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Sales tax paid with the closing of the sale of rental property would be reported 1) in the year you actually paid the taxes and 2) under Deductions & Credits >> Other Income Taxes >> Withholding not already entered.
Taxes of any type are not deducted from the sale proceeds; they're entered separately.
Thanks for the reply! So the state withheld ~$4000 at time of sale. When I calculated actual tax due with turbo tax, it was ~$2000 (so I’m supposed to get a state tax refund). Do I enter the amount withheld or the amount of tax calculated?
You are filing a tax return for 2023. If you have paperwork showing you paid the $4,000 in 2023, you can claim it. If it was paid in 2024, you must wait.
If you are calculating estimated payments for 2024, you would add the $4000 paid in 2024.
Thank you! So do recording tax and transfer tax go in the same section as the withholding?
No, recording tax and transfer tax are taxes that you paid and they are deductions. Withholding is money that was taken in anticipation of taxes that might be due.
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