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Nonresident Withholding Waiver Request

State in detail your reason for requesting a withholding waiver or reduced withholding. Attach additional sheets if needed. The Franchise Tax Board (FTB)

cannot make a determination on your request unless you provide all required information and documentation. See instructions.

Part II

Property Information

Escrow Information

Date Seller Acquired:

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 _________

Name of Escrow Officer:

Escrow Number:

Other (attach explanation)

Seller’s Adjusted Basis:

Escrow Telephone Number:

Escrow FAX Number:

Purchase Price

$ ____________________________

Add: Improvements

____________________________

Less: Depreciation

____________________________

Contract Price (total sales price):

Estimated Close of Escrow Date:

Adjusted Basis

$ ____________________________

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

Preparer Tax Identification Number (PTIN)

B What is Real Estate

Tax preparers now have the option of using a

Withholding?

Form 597-W, Withholding Exemption

unique identification number (PTIN) instead

Certificate and Nonresident Waiver Request

of a social security number when signing tax

Real estate withholding:

for Real Estate Sales, replaces Form 590-RE

returns.

• Is a prepayment of the amount of income

Withholding Exemption Certificate for Real

tax due from the gain on the sale of

A Purpose

Estate Sales and Form 597-A, Nonresident

California real estate;

Withholding Waiver Request for Real Estate

When California real estate is sold by a

• Is not an additional tax on the sale of real

Sales.

nonresident, buyers are required by law

estate;

Requirement to File a California Tax Return

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

• Is primarily intended to ensure that the

A completed Form 597-W relieves the buyer

the total sales price unless a withholding

income tax owed on the taxable gain from

of the requirement to withhold but does not

exemption is met or the Franchise Tax Board

the sale will be paid;

eliminate the requirement that the seller must

(FTB) authorizes a waiver or reduction in the

• Reduces the likelihood that the seller will

file a California tax return and pay the tax due.

withholding amount.

be subject to penalties for underpayment

Private Mailbox (PMB) Number

of estimated tax; and

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

If you lease a mailbox from a private business

• Is similar to wage withholding. As with

you meet a withholding exemption for the

rather than from the United States Postal

wage withholding, the amount withheld is

sale of California real estate; or

Service, enter your PMB number in the field

claimed as a credit against the income tax

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

labeled “PMB no.”

liability computed at the end of the taxable

waiver or reduction of the required

year.

withholding for the sale of California real

If the amount withheld is more than the

estate.

income tax liability, the difference will be

refunded when a tax return is filed after the

end of the taxable year.

Page 2 Form 597-W

597W99209

(NEW 1999)

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

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