Is the Property Tax and/Or the Real Estate Tax Withholdings calculated in the property sale expenses? need help with filing 1041

[mkedikian]

I am doing Estate tax return 1041.  its simple return decedent property sold and need to enter info to figure out if theres tax due.  can someone help me.

[sjrcpa · Accepted solution]

Neither property tax or state tax withholding are expenses of sale .

[mkedikian]

Now this raises more questions, can i contact you?

[IRonMaN]

Post your questions here.  We don’t mind helping but we do mind phone calls :telephone_receiver:

[mkedikian]

property was sold for $212,500, brokerage $8500, Title $1,018, Escrow $725, Loan Pay Off $62,913.88, Property Tax $1,039.56, Misc. $295, Attorney Fee $1,960.24, Real Estate Withholding Tax $7,076: Net proceeds $129,884.83.   Now, where do we plug the $7,076 (or do we deduct it from state tax due),  $1,039.56, and $62,913.88?  with these info does the estate have gain or loss? having in mind the Stepped-up basis is $137,500.  Hope this made sense.

[taxiowa]

What state Oregon?

[Just-Lisa-Now-]

Looks like California 3.33% withholding.   Doesn't the 1041 have a Homesale Worksheet to plug all this into?

[mkedikian]

State of California, 1041 doesnt have have place to plug the tax withholding and property tax plugs

[Just-Lisa-Now-]

Did you get the Form 593 for the CA withholding?  That gets entered in the 541, not the 1041.

[mkedikian]

i have form 541, but i dont see form 593

[sjrcpa]

Property tax gets deducted as tax. Brokerage, title, misc, and attorney fee sound like expenses of sale,

[Just-Lisa-Now-]

State taxes paid is on line 11 on the front page of the 1041.

The Form 593 (or is it 592?) CA state withholding certificate would have been issued by the title company showing the withholding money paid into the state of CA.  You'll need that, I have to track them down for clients all the time.  You can find it in the list of Forms for the 541. That has to be filled out for CA to recognize the withholding claimed on the tax return.

EDIT   OK, maybe Im wrong on the withholding form...the 592 is to allocate the withholding to the K-1s...I don't see the 593 in the 541 forms list.    ...so maybe that's just for individuals.

[Busy123]

CA Form 593 doesn't exist in 2017 ProSerie….. Can 592-B be used?