Fill out Form 4797: Report the sale and calculate the gain. 2. For California taxes, the depreciation period for residential rental property is 45 years.So that requires a separate set of calculations. What form(s) do we need to fill out to report the sale of rental property? Are you a landlord looking to sell a rental property? Zillow has 84375 homes for sale in California. You must pay tax on any profit from renting out property. For California, rental income and losses are always considered a passive activity. There are no exemptions for sales of rental properties that result in a gain. The obligation to file form 593 is the escrow's, not yours.