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Level 2

Question

Withholding on CA Form 593- Stepped up basis

3 replies
38 views

I am the successor trustee of my Moms estate. Recently we sold land and a cabin in California, and distributed the proceeds to the three beneficiaries. However, the title company withheld 3.3% of the gross sales price, about $9400.

I'd like to claim a loss or no gain and get back this withholding. Since the date of death appraisals were greater than the gross sales price by $120000 can I claim a loss and get back the $9400 when I file taxes on the estate?

Not A Product Question

Level 15

Whatever was withheld by the title company for the state has to refunded by the state, if a refund is due.

You can report the loss on your 1041 and distribute the loss to the beneficiaries if this is the estate's final return.

JakeandBakeAuthor

Level 2

Thanks for the quick reply. One follow up question: To claim a loss, do I provide copies of date of death appraisals to the CA Franchise Tax Board?

Level 15

I'm not certain about CA so I can't really provide an answer.

Generally, you would want one for federal income tax (estate) purposes if there was a long gap between the date of death and the sale.