QUESTION

Can I use the sale taxes of the home we sold on my 2016 filing?

Asked on Dec 31st, 2016 on Taxation - California
More details to this question:
My girlfriend and I sold our home. Will I file even though we are not married? Is there any other way we can do this because she has no income?
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1 ANSWER

Taxation Law Attorney serving Glendale, CA at Irsfeld, Irsfeld & Younger LLP
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Your question is a bit odd. The taxes paid in connection with sale of a home are the documentary transfer tax. It is treated like all the other expenses of sale, essentially as an offset to the sale price, thereby reducing the gain on the sale, if any. Losses on the sale of a personal residence are not deductible. Perhaps some tax was withheld and paid to the Franchise Tax Board. If it was reported by escrow to your girlfriend, then it is hers, not yours. If (or to the extent) it was reported as paid for you, then you get to deduct it on your federal return and to treat is as withholding tax paid to the state.
Answered on Feb 28th, 2017 at 4:24 PM

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