Sale of an inherited property/593 CA Tax withholding

[kimberlymcallister]

My husband inherited his mother's house in 2017.  We never used it as a rental property or lived in it and we finally sold it in 2022 for a profit.  My issue is trying to complete our CA State taxes and it keeps asking me for the purchase date and sale date of our former main home which this was not our main home.  When I did our Federal taxes, I did not mark this sale as our main home but as an investment (which is what I've read to do).  I don't know how to eliminate this on the California Home Sale Worksheet so it will stop asking me for that information.

[AmyC]

Something is very wrong because you have a basis of $49,000 and a loss of $49,000 which means you literally gave the house away for zero. You need to go back to federal and get rid of what you did. Then follow the steps in Where do I enter the sale of a second home, an inherited home, or land on my 2022 taxes?

[kimberlymcallister]

Hi Amy,

I deleted my original entry for my inherited property sale in Federal and here is what I entered and it is still giving me the same error in my State Taxes.