2629741
I don't think I really want to know the answer to this, but maybe some good will come of it...
Having sold a jointly owned home in CA after death of one non-spouse JT, I entered data and TT determined Total Gain, no problem.
In the below graphic, it shows Total Gain figured from the previous entries and also has place to enter 'Earned/Rev'd from CA Source as if Nonresident for Full Year'.
There is no explanation as to what exactly, this entry is supposed to be! Am I to indicate here, the Gain from the sale of the house I/we received or is this entry for something else?
If I leave it blank, we get ALL the pre-paid CA Franchise Tax back (a percentage paid incidentally, on the full sales price, NOT just on the Gain by surviving JT). If I enter the total gain here, we pay virtually the full amount... which would be very sad.
Also, should we not be paying taxes on only the Gain (net sale - cost basis adj) vs the Full Sales Price or the Net of Sale after deducting realtor Fees, etc?
Thanks!
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Your gain for CA is the same as your Federal. You would determine purchase plus closing costs, contrasted to sales price.
Thanks Coleen... I guess it's not that simple for me. LOL. Can you please answer my specific questions?
1) Should the questioned entry for Earned/Rec'd from CA Source be the same number as the Total Gain/Loss (blue block) if we indeed receive that full amount? Are they just asking if you actually received the full Gain or only part of it, so the taxes can be adjusted as needed?
2) Sorry. your reference to 'purchase price + closing costs contrasted to sales price' is confusing to me. If you are suggesting at how to arrive at the Total Gain, would that not be Gross Sales Price - Closing Costs/Fees - Basis = Net Gain? I mean, this is how TurboTax leads me through the Federal calculation which is then protracted into the State return.
1) You are asked what your total gain and loss is.In your case, it is the same amount. There may be circumstances where it is not.
2) Both methods work out to the same amount. Basis starts out with cost and it can have adjustments (improvements and closing costs increase basis while depreciation reduces it) that give you the adjusted basis. When you are asked for a sale price, it is never an adjusted sale price.
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