Instructions For Form 593 Draft - Real Estate Withholding Tax Statement

• Non-grantor trust, enter the name of the

Installment Sale Payment: Check this box if

Exchange:

non-grantor trust and the non-grantor trust’s

the transaction is structured as an installment

a. Amount Subject to Withholding.

FEIN. If the non-grantor trust has not applied

sale, as evidenced by a promissory note, or if

For completed deferred

for a FEIN, leave the identification number

you are withholding on the principal portion

exchanges, enter the amount

blank. Do not enter the trustee information.

of any installment payment. Attach a copy of

of boot (cash or cash

When the non-grantor trust receives their

the promissory note with the first installment

equivalent) received by

FEIN, contact the FTB at 888.792.4900.

payment only.

the seller/transferor . . . . . . .$__________

• Single member disregarded limited liability

Boot: Check this box if the seller/transferor

b. Withholding Amount. Multiply

company, enter the name and identification

intends to complete a deferred exchange, but

line a by 3

% (.0333) and

number of the single member.

receives boot (cash or cash equivalent) out of

enter the result here and on

For all other non-individual sellers/transferors,

escrow.

Form 593, line 5 . . . . . . . . . .$__________

enter the FEIN, CA Corp number, or CA SOS

Failed Exchange: Check this box for any

Failed Exchange:

file number.

failed exchange, including if a failed deferred

a. Total Sales Price. If a deferred

Enter the address (or parcel number and

exchange had boot withheld upon in the original

exchange is not completed or

county) of the California real property

relinquished property.

does not meet the deferred

transferred.

Line 4 – Withholding Calculation

requirements, enter the total

Check one box that represents the method to

Conventional Sale/Transfer and Installment

sales price . . . . . . . . . . . . . .$__________

Sale: Enter the address (parcel number and

be used to calculate the withholding amount

b. Ownership Percentage. If

county) of the transferred property.

on line 5. Either the Total Sales Price Method

multiple sellers/transferors

% (.0333) of the total sales price, boot, or

Exchange: Enter the address of the relinquished

attempted to exchange this

installment sale payment) or the Optional Gain

property.

property, enter this

on Sale Election based on the applicable tax rate

seller’s/transferor's

as applied to the gain on sale. Check only one

Part III – Escrow or Exchange

ownership percentage.

box, A-G.

Information

Otherwise, enter 100.00% . . . _ _ _ ._ _%

Line 5 – Amount Withheld from this

c. Amount Subject to

Seller/Transferor

Line 1 – Escrow or Exchange Number

Withholding. Multiply

Enter the amount withheld from this transaction

Enter the escrow or exchange number for the

line a by line b . . . . . . . . . . .$__________

or installment payment based upon the

property transferred.

d. Withholding Amount. Multiply

appropriate calculation for either the Total Sales

Line 2 – Date of Transfer, Exchange

line c by 3

% (.0333) and

Price or the Optional Gain on Sale Election,

Completion, Failed Exchange, or Installment

enter the result here and

below.

Payment. If the date is left blank, we will use

on Form 593, line 5 . . . . . . .$__________

a default date of January 1 of the tax year in

Withholding Calculation Using

which the Form 593 is received. Penalties may

Withholding Calculation Using

Total Sales Price Method

apply for failure to file a complete, correct,

Optional Gain on Sale Election

and timely information return. For additional

Conventional Sale/Transfer:

information, see General Information F, Interest

Conventional Sale/Transfer: Enter the amount

a. Total Sales Price . . . . . . . . . .$__________

and Penalties.

from Form 593-E, Real Estate Withholding –

b. Enter the seller’s/transferor's

Conventional Sale/Transfer: Enter the date

Computation of Estimated Gain or Loss, line 17

ownership percentage . . . . . . _ _ _ ._ _%

escrow closed.

on Form 593, line 5.

c. Amount Subject to Withholding.

Exchange: For completed exchanges, enter the

Installment Sale: The optional gain on sale

Multiply line a by line b and

date that the boot (cash or cash equivalent)

withholding amount for an installment sale is

enter the result . . . . . . . . . .$__________

was distributed to the exchanger. For failed

calculated in two steps.

exchanges, enter the date when it was

d. Withholding Amount. Multiply

Step 1: Calculate the installment sale

determined that the exchange would not meet

line c by 3

% (.0333) and

withholding percent that will be applied to

the deferred exchange requirements and any

enter the result here and on

all installment payments, including the first

cash was distributed to the seller/transferor.

Form 593, line 5 . . . . . . . . . .$__________

installment payment (this includes any deposits,

When withholding on boot or a failed exchange,

Installment Sale:

down payments, or amounts paid for the

be sure to use the forms for the year that you

seller/transferor) received during escrow:

a. Amount Subject to Withholding.

entered on line 2 (rather than the year of the

If you are withholding on the first

a. Gain on sale from Form 593-E,

sale), since the seller/transferor will be able to

installment payment in escrow,

line 16 . . . . . . . . . . . . . . . . .$__________

use installment sale reporting for the gain.

enter the required amount of the

(sale price minus cost of sale)

Installment Sale: For withholding on the first

first installment payment. If you

b. Selling price from Form 593-E,

installment payment, enter the date escrow

are withholding on subsequent

line 1 . . . . . . . . . . . . . . . . . $__________

closed. For withholding on the principal portion

installment payments or the

(total sale price)

of each installment payment, enter the date of

final payoff in escrow, enter

c. Installment sale withholding

the installment payment.

the principal portion of the

percent, divide line a by line b _ _ _._ _%

payment . . . . . . . . . . . . . . . .$__________

Line 3 – Type of Transaction

Check one box that represents the type of real

b. Withholding Amount. Multiply

estate transaction for which the withholding is

line a by 3

% (.0333) and

being calculated.

enter the result here and on

Form 593, line 5 . . . . . . . . . .$__________

Conventional Sale/Transfer: Check this box if

the conventional sale/transfer represents the

close of escrow for the real estate transaction.

This sale/transfer does not contain any

conditions such as an installment sale, boot, or

failed exchange.

Form 593 Instructions 2015 Page 3

Instructions For Form 593 Draft - Real Estate Withholding Tax Statement - 2016 Page 3

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