I sold rental property in California (previously owned primary home from 2007 housing crash) in March of 2019. I have resided in Nevada since 2012 and no other income from California except rental property. During sale of home, 3 1/3% withholding calculation was taken out of my profit and sent by check through title company to California Franchise tax board. I have broken even ever year on rental income versus expenses/depreciation/mortgage payment and have not owed taxes nor received a refund from California in years when I have been filing ever year. From original purchase back 2005 to 2019 when property was sold, I am still at a loss on the home. So filing taxes this year, I enter into the federal and state taxes the CA form 593 I received from title company where designated. After completing CA state taxes, it is showing a full refund of the amount that I paid to California franchise tax board for taxes withheld for sale of a home. I was not buying a home after so did not roll capital gains over to avoid taxes being withheld on sale. So why I am getting the full refund of those taxes withheld? Have I missed something? If anybody has any suggestions or advice or knows of why this is, PLease let me know. Don't need California coming after me for a good chunk of money that turbotax says I am getting back. Thank you in advance for your thoughts.
