Am I eligible for partial exclusion CA 593 Form?

[ackerc21]

Hello, I am trying to get clarification regarding CA 593 Real estate tax withholding? I am having a hard time interpreting IRC 121 for the extension of a 10-year look back for active-duty military members and partial exclusions due to relocation for employment. It is unclear what option we should select on the 593 (if any at all). Situation - AD military resided in property for 19 months, 12 days (Jan 2020 - Sep 2021) relocated due to military separations (graduate school) and employment (mil spouse/reservist - was on active orders for greater than 90 days before relocation). Rather than selling we decided to convert our residence to a rental as we initially intended to move back to CA from MN but we ultimately decided not to and are now selling. Do we qualify for exemption?

[KarenL · Accepted solution]

California Form 593 is unsupported by TurboTax. It's filled out at the time of the sale and is required by the California Franchise tax board. Based on the instructions for Form 593, since the last use of the home was not as your principal residence, you may not qualify for an exception. You will select Box 12 in Part IV of Form 593 . Then fill out Part VI to calculate the amount.