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Part II Nonresident Withholding Waiver Request

State in detail your reason for requesting a withholding waiver or reduced withholding. If there is more than one nonresident seller, attach

a separate sheet listing additional nonresident seller’s information. Examples of situations where a waiver or reduced withholding will be

allowed are IRC Section 1031 tax-free exchanges, installment sales, multiple sellers, etc.

Attach additional sheets if needed. The FTB cannot make a determination on your request unless you provide all required information and

documentation. See instructions.

Buyer’s Information

Name

Social security no.

CA corp. no.

FEIN

SOS file no.

Street address

PMB no.

City, State, ZIP Code

Phone number

(

)

Property Information

Escrow Information

Date seller acquired property:

Name and address of Escrow Company:

Seller acquired property by (check one):

Purchase

Inheritance

Foreclosure/Repossession

Gift

1031 Exchange

call (888) 792-4900 U.S. toll-free

or (916) 845-4900

Other____________________

Use of property at time of sale:

Length of time used for this purpose:

Rental / Commercial

Secondary / Vacation home

Years ________ Months _________

Escrow Company email address

Other (attach explanation)

Seller’s adjusted basis:

Name of Escrow Officer:

Escrow number:

Purchase price

$ ____________________________

Add: improvements

____________________________

Escrow Company or Officer

FAX number:

Less: depreciation

____________________________

telephone number:

(

)

(

)

Adjusted basis

$ ____________________________

Contract price (total sale price):

Estimated close of escrow date:

Provide all required documentation listed in the instructions. Attach any other

documents necessary to verify the adjusted basis.

Instructions for Form 597-W

Withholding Exemption Certificate and Nonresident Waiver Request for Real Estate Sales

References in these instructions are to the Internal revenue Code (IRC) as of January 1, 1998, and the California Revenue and Taxation Code (R&TC)

General Information

• Use Part I of Form 597-W to certify that

• Is similar to wage withholding. As with

you meet a withholding exemption for the

wage withholding, the amount withheld is

sale of California real estate; or

claimed as a credit against the income tax

Requirement to File a California Tax Return

liability computed at the end of the taxable

A completed and signed Form 597-W, Part I

• Use Part II of Form 597-W to request a

year.

relieves the buyer of the requirement to

waiver or reduction of the required

withhold but does not eliminate the require-

withholding for the sale of California real

If the amount withheld is more than the

ment that the seller must file a California tax

estate.

income tax liability, the difference will be

return and pay the tax due.

refunded when a tax return is filed after the

B What is Real Estate

end of the taxable year.

Private Mailbox (PMB) Number

If you lease a mailbox from a private business

Withholding?

C Exemptions from

rather than from the United States Postal

Real estate withholding:

Service, enter your PMB number in the field

Withholding (Part I)

• Is a prepayment of the amount of income

labeled “PMB no.”

The seller is exempt from the withholding

tax due from the gain on the sale of

requirements if they have answered “Yes” to

A Purpose

California real estate;

any of the questions in Part I. The completed

• Is not an additional tax on the sale of real

When California real estate is sold by a

Form 597-W, Part I, should be signed by the

estate;

nonresident, buyers are required by law

seller and given to the buyer or other

• Is primarily intended to ensure that the

(R&TC Section 18662) to withhold 3 1/3% of

withholding agent who should retain the form

income tax owed on the taxable gain from

the total sale price unless a withholding

for five years following the close of the

the sale will be paid;

exemption is met or the Franchise Tax Board

transaction. The buyer will be relieved of the

• Reduces the likelihood that the seller will

(FTB) authorizes a waiver or reduction in the

real estate withholding requirements if the

be subject to penalties for underpayment

withholding amount.

buyer relies in good faith on a completed and

of estimated tax; and

signed Form 597-W, Part I. A completed

Page 2 Form 597-W

597W00209

(REV 2000)

California Form 597-W - Withholding Exemption Certificate And Nonresident Waiver Request For Real Estate Sales - 2000 Page 2

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