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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: George K. who wrote (41209)	9/11/2005 6:57:08 PM
From: David Jones	Read Replies (1) \| Respond to of 306849

>>>non-residents pay 2.5% of the sales price<<< Is that demanded at escrow close form seller? If so, California doesn't have such provisions that I'm aware of.

To: George K. who wrote (41209)	9/11/2005 7:55:22 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 306849

California has a 3.33% Withholding Tax on property sold in California by Non-Residents to insure payment of any taxes due on the sale. Withholding is not required when any of the following are true: • The total sales price does not exceed $100,000. • The seller is a bank or bank acting as a fiduciary for a trust. • The property is being foreclosed upon. • The seller meets a full exemption on Form 593-C. ftb.ca.gov Withholding Requirements for Sale of California Real Estate California law requires withholding of 3 1/3 percent of the total sales price on sales of California real property. The seller may be exempt from withholding if they certify that they meet an exemption. We have put together some information to help you understand California's withholding requirements. Assembly Bill 1338 amended Revenue and Taxation Code Sections 18662 and 18668 making changes to the real estate withholding requirements and exemptions for sales of California real property in 2005. As of January 1, 2005, non-individual sellers (such as business entities, estates, and trusts), the waiver process is replaced with the self-certification process used by individuals. Non-individuals can self-certify that they are exempt from withholding by completing Form 593-C. Forms related to withholding on California Real Estate sales on or after January 1, 2005: Form 593 - Real Estate Withholding Remittance Statement Form 593-B - Real Estate Withholding Tax Statement Need assistance completing Form 593-B? See examples of properly completed Forms 593-B. Forms 593-C and 593-L Booklet - Real Estate Withholding Certificate and Computation of Estimated Gain or Loss Form 593-I - Real Estate Withholding Installment Sale Agreement Publications and reference material regarding Real Estate Withholding: FTB Pub. 1016 - Real Estate Withholding Guidelines AB 1338 Comparison Chart for Real Estate Sales Closing on or after January 1, 2005 (Rev. 12/04) Information for buyers and sellers (Rev. 12/04) Form Changes for Real Estate Sales Closing on or after January 1, 2005 Read more about Assembly Bill 1338 (stats. 2004, ch. 528) Frequently Asked Questions (FAQs)(February 2005) The forms can be filled in on-line. These forms along with a complete list of all Tax Forms, Instructions and Publications, are located on our FTB forms index page. For help, instructions, and information on downloading, viewing and printing visit our User Instructions page. To obtain forms by phone, mail, e-mail or in person, see Additional Ways to Get Forms. .