California Form 593-C - Real Estate Withholding Certificate - 2017 Page 4
Download a blank fillable California Form 593-C - Real Estate Withholding Certificate - 2017 in PDF format just by clicking the "DOWNLOAD PDF" button.
Open the file in any PDF-viewing software. Adobe Reader or any alternative for Windows or MacOS are required to access and complete fillable content.
Complete California Form 593-C - Real Estate Withholding Certificate - 2017 with your personal data - all interactive fields are highlighted in places where you should type, access drop-down lists or select multiple-choice options.
Some fillable PDF-files have the option of saving the completed form that contains your own data for later use or sending it out straight away.
ADVERTISEMENT
1
2
3
4Part III – Certifications That May Partially or
Fully Exempt the Sale From Withholding
Complete Part III only if you did not meet any of the exemptions
in Part II.
Line 10 – Simultaneous Exchange
If the California real property is part of a simultaneous like-kind exchange
within the meaning of IRC Section 1031, the transfer is exempt from
withholding. However, if the seller/transferor receives money or other
property (in addition to property that is a part of the like-kind exchange)
exceeding $1,500 from the sale, the REEP must withhold.
Line 11 – Deferred Exchange
If the California real property is part of a deferred like-kind exchange
within the meaning of IRC Section 1031, the sale is exempt from
withholding at the time of the initial transfer. However, if the
seller/transferor receives money or other property (in addition to property
that is a part of the like-kind exchange) exceeding $1,500 from the sale,
the qualified intermediary must withhold.
If the exchange does not take place or if the exchange does not qualify
for nonrecognition treatment, the intermediary or accommodator must
withhold
(.0333) of the total sales price.
3
/
%
1
3
Line 12 – Installment Sale
The REEP reports the sale or transfer as an installment sale if there
will be at least one payment made after the tax year of the sale. The
withholding is
(.0333) of the down payment during escrow.
3
/
%
1
3
Buyers/Transferees are required to withhold on the principal portion of all
payments made following the close of escrow unless an approval letter
for the elect-out method is received.
When the withholding amount on the down payment is sent to the
FTB, the FTB must also receive a completed Form 593-I, Real Estate
Withholding Installment Sale Acknowledgement, a completed Form 593,
and a copy of the promissory note.
Seller/Transferor Signature
You must sign this form and return it to your REEP by the close of
escrow for it to be valid. Otherwise, the REEP must withhold the
full
(.0333) of the total sales price or the optional gain on sale
3
/
%
1
3
withholding amount from line 5 of Form 593 that is certified by the
seller/transferor only for the optional gain on sale election.
Penalty – Any seller/transferor who, for the purpose of avoiding the
withholding requirements, knowingly executes a false certificate is liable
for a penalty of $1,000 or 20% of the required withholding amount,
whichever is greater.
Page 14 Real Estate W/H Forms Booklet 2016
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial