Subject: Capital Gains
Date: Sat, 27 Mar 2004
My friend just sold his rental property and had to pay withholding for capital gains taxes. I thought taxes were just paid when you filed your income taxes, and he really didn't make much.
Date: Fri, 2 Apr 2004
California is collecting withholding for real estate sales to help with the budget mess. Your friend should show the withholding as a tax payment on his or her California income tax return to recover any tax withheld over the actual amount owed.
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