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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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Upon sale of rental property, a california witholding tax was

Resolved Question:

Upon sale of rental property, a california witholding tax was witheld on close of escrow. i declared this amount on schedule A and also on 540 line 38.,as real estate witholding., Can i also include this amount with my actual selling expenses to reduce my basis., i.e., commission, california witholding., misc expenses related to selling the property?
Submitted: 8 years ago.
Category: Tax
Expert:  Lev replied 8 years ago.

assuming your question relates to the previous question - http://tax.justanswer.com/questions/1emgd-paid-additional

 

If the sale of rental property was in 2007 - you are correct by including this amount as paid in 2007 on schedule A and

 

You also should include that amount in line 39 of the form 540CA - because it was included in your federal itemized deductions.

 

However you should not include tax payment into selling expenses and may not include it into your basis. The same is true for the property tax.

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