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Richard, Tax Attorney
Category: Tax
Satisfied Customers: 55720
Experience:  29 years of experience as a tax, real estate, and business attorney.
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I received a portion of the sale of a relative's home in California

Customer Question

I received a portion of the sale of a relative's home in California in 2015 and got a 1099S. Do I have to pay any CA taxes directly to that state? I live in Maryland.
Submitted: 1 year ago.
Category: Tax
Expert:  Richard replied 1 year ago.
Good morning. My name is ***** ***** I look forward to helping you. Can you provide me a bit more information? Did you own a portion of the house or was this a gift after the owner sold the house? If you were an owner, did you acquire the ownership due to an inheritance? If so, when did the relative die?
Customer: replied 1 year ago.
inheritance...DOD Feb 2015
Customer: replied 1 year ago.
Please just let me know about CA...
Expert:  Richard replied 1 year ago.
Thank you! You will need to file a return in CA to report the sale. You shouldn't owe any tax on the sale because when you inherited the property, the basis of the property was adjusted to its fair market value. Thus, when you sell it for that fair market value, there is no gain, and therefore no tax. BUT, if you don't file a CA return, the CA government will presume your basis to be zero and treat all the proceeds as gain and thus taxable. Therefore, since the property was located in CA, you do need to file the CA return. Thank you so much for allowing me to help you with your questions. I have done my best to provide information which fully addresses your question. If you have any follow up questions, please ask! If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service as OK, Good or Excellent (hopefully Good or Excellent). Otherwise, I receive no credit for assisting you today. I thank you in advance for taking the time to provide me a positive rating!
Expert:  Richard replied 1 year ago.
I just wanted to let you know that I will be away at a meeting for the next hour or so. Should you follow up while I’m away, I will address it immediately upon my return. Thank you in advance for your patience. I apologize for any inconvenience.
Expert:  Richard replied 1 year ago.
I have now returned so I'll be happy to help you with any follow up questions you may have. :)