California Form 593-C - Real Estate Withholding Certificate - 2017 Page 2
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42017 Instructions for Form 593-C
Real Estate Withholding Certificate
References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 2015, and to the California Revenue and Taxation Code (R&TC).
General Information
Specific Instructions
In general, for taxable years beginning on or after January 1, 2015,
Private Mail Box (PMB) – Include the PMB in the address field. Write
California law conforms to the Internal Revenue Code (IRC) as of
“PMB” first, then the box number. Example: 111 Main Street PMB 123.
January 1, 2015. However, there are continuing differences between
Foreign Address – Follow the country’s practice for entering the city,
California and federal law. When California conforms to federal tax law
county, province, state, country, and postal code, as applicable, in the
changes, we do not always adopt all of the changes made at the federal
appropriate boxes. Do not abbreviate the country name.
level. For more information, go to ftb.ca.gov and search for conformity.
Additional information can be found in FTB Pub. 1001, Supplemental
Part I – Seller/Transferor Information
Guidelines to California Adjustments, the instructions for California
Schedule CA (540 or 540NR), and the Business Entity tax booklets.
Enter the name, tax identification number, and address of the
seller/transferor. If the seller/transferor does not provide a tax
Like-Kind Exchanges – For taxable years beginning on or after
identification number, then Form 593-C is void, and withholding is
January 1, 2014, California requires taxpayers who exchange property
required.
located in California for like-kind property located outside of California,
and meet all of the requirements of the IRC Section 1031, to file an
Note: If you choose to provide a copy of Form 593-C to the
annual information return with the Franchise Tax Board (FTB). For more
buyer/transferee, delete the seller’s/transferor’s tax identification number
information, get form FTB 3840, California Like-Kind Exchanges, or go to
on the buyer’s/transferee’s copy.
ftb.ca.gov and search for like kind.
If the seller/transferor is an individual, enter the social security
number (SSN) or individual taxpayer identification number (ITIN). If the
Purpose
sellers/transferors are spouses/registered domestic partners (RDPs)
Use Form 593-C, Real Estate Withholding Certificate, to certify that you
and plan to file a joint return, enter the name and SSN or ITIN for each
qualify for a full or partial withholding exemption.
spouse/RDP. Otherwise, do not enter information for more than one
Qualifying for an exemption from withholding or being withheld upon
seller/transferor. Instead, complete a separate Form 593-C for each
does not relieve you of your obligation to file a California income tax
seller/transferor.
return and pay any tax due on the sale of California real estate.
If you do not have an SSN because you are a nonresident or a resident
You may be assessed penalties if:
alien for federal tax purposes, and the Internal Revenue Service (IRS)
issued you an ITIN, enter the ITIN in the space provided for the SSN.
• You do not file a tax return.
• You file your tax return late.
An ITIN is a tax processing number issued by the IRS to individuals who
•
The amount of withholding does not satisfy your tax liability.
have a federal tax filing requirement and do not qualify for an SSN. It is a
nine-digit number that always starts with the number 9.
The seller/transferor must submit this form before the close of escrow to
prevent withholding on the transaction. After escrow has closed, amounts
If the seller/transferor is a business, enter the business name in the
withheld may be recovered only by claiming the withholding as a credit
name field along with the federal employer identification number (FEIN),
on the appropriate year’s tax return.
CA Corporation number (CA Corp no.), or CA Secretary of State (CA SOS)
file number.
How to Claim the Withholding
If the seller/transferor is a grantor trust, enter the grantor’s individual
To claim the withholding credit, report the sale or transfer as required and
name and SSN. For tax purposes, the grantor trust is disregarded and the
enter the amount from line 5 of Form 593, Real Estate Withholding Tax
individual seller/transferor must report the sale and claim the withholding
Statement, on your California tax returns as withholding from Form(s)
on their individual tax return. If the trust was a grantor trust that became
592-B or 593. If your filing status changed after escrow closed and
irrevocable upon the grantor’s death, enter the name of the trust and the
before filing your California tax return, call us at 888.792.4900 prior to
trust’s FEIN. Do not enter the decedent’s or trustee’s name or SSN.
filing your tax return for instructions on how to claim your withholding
If the seller/transferor is a non-grantor trust, enter the name of the trust
credit. Claim your withholding credit on one of the following:
and the trust’s FEIN. Do not enter trustee information.
• Form 540, California Resident Income Tax Return
If the seller/transferor is a single member limited liability company
• Form 540NR Long, California Nonresident or Part-Year Resident
(SMLLC), enter the name and tax identification number of the single
Income Tax Return
member.
• Form 541, California Fiduciary Income Tax Return
For all other non-individual sellers/transferors, enter the FEIN, CA Corp
• Form 100, California Corporation Franchise or Income Tax Return
no., or CA SOS file number.
• Form 100S, California S Corporation Franchise or Income Tax Return
• Form 100W, California Corporation Franchise or Income Tax
Ownership Percentage
Return – Water’s-Edge Filers
Enter your ownership percentage rounded to two decimal places
• Form 109, California Exempt Organization Business Income
(e.g. 66.67%). If you are on the title for incidental purposes and you have
Tax Return
no financial ownership, enter 0.00 and skip to Seller/Transferor Signature.
• Form 565, Partnership Return of Income
You will not be withheld upon.
• Form 568, Limited Liability Company Return of Income
Examples of sellers/transferors who are on title for incidental
purposes are:
• Co-signers on title (e.g., parents co-signed to help their child qualify
for the loan).
• Family members on title to receive property upon the owner’s death.
Property Address
Enter the address (or parcel number and county) of the CA real property
transferred.
Page 12 Real Estate W/H Forms Booklet 2016
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