California Tax On Sale of Second Home - Non Resident

[jnindel]

What is the name of your state (only U.S. law)? Florida and California

I am a full-time resident of Florida. For many years I have owned a condo in Palm Springs, California. I used the condo as a vacation home that I would visit three or four times a year for a week each time.

I am selling this condo in two weeks, for a profit. The settlement company made me complete and file California Form 593, "Real Estate Withholding Tax Statement". I reported a tax withholding of $6500 on line 5 of California form 593.

Am I required to file a California Income Tax return in 2017 even though I am a resident of Florida and did not earn any income in California, other than the profit on the sale of the condo? If so, what form do I file? And, will I be required to pay California income tax on my total income (the total income reported on my federal 1040)? Thanks.

 

[LdiJ]

What is the name of your state (only U.S. law)? Florida and California

I am a full-time resident of Florida. For many years I have owned a condo in Palm Springs, California. I used the condo as a vacation home that I would visit three or four times a year for a week each time.

I am selling this condo in two weeks, for a profit. The settlement company made me complete and file California Form 593, "Real Estate Withholding Tax Statement". I reported a tax withholding of $6500 on line 5 of California form 593.

Am I required to file a California Income Tax return in 2017 even though I am a resident of Florida and did not earn any income in California, other than the profit on the sale of the condo? If so, what form do I file? And, will I be required to pay California income tax on my total income (the total income reported on my federal 1040)? Thanks.

You would file a 540NR (non resident return) and you would end up paying tax only on the CA income. Since you had CA withholding of $6500.00 you may still owe some tax or you may get a refund.

 

[jnindel]

Thanks very much. And when you say "California Income" you mean only the profit on the sale of the condo, and not my Florida salary, etc. Right?

 

[LdiJ]

Thanks very much. And when you say "California Income" you mean only the profit on the sale of the condo, and not my Florida salary, etc. Right?

Yes...however, be careful about how you determine the amount of your "profit". Your capital gain/profit is the sales price minus selling expenses minus the original purchase price of the unit plus major improvements. That may not be equal to the amount of cash you netted. It could be less, it could be more.