Looking for a California Ftb Form 593 Templates? Download it for free!

Real Estate Escrow Person (REEP)

File only a completed current year Form 593

Single member limited liability company –

and Form 593-V with each withholding

Enter the name and identification number of

Instructions

payment.

the single member.

Make a copy of this form for your records.

For example, if you withhold on a payment

The seller’s/transferor’s identification number

Mail the completed original Form 593-

, a

to a seller on June 1, 2017, then use a 2017

(SSN, ITIN, FEIN, CA Corp no., or CA SOS file

copy of the promissory note, the seller’s/

Form 593 and Form 593-V.

no.) is required on each form.

transferor’s Form 593, and Form 593-V, with

Form 593-

, a copy of the promissory note,

If the seller/transferor is electing the

the required withholding amount on the down

and the seller’s/transferor’s signature are not

Optional Gain on Sale withholding amount,

payment to the FTB at the address shown in

required.

ask the seller/transferor to provide you the

Buyer/Transferee Instructions. Get Form 593

installment withholding percentage that the

instructions for more information.

When the buyer/transferee sends the

seller/transferor calculated in the instructions

withholding on the final installment payment,

for the Form 593. Include this installment

write “Final Installment Payment” on the

withholding percentage in the appropriate

bottom of Form 593.

box and use this percentage as part of the

For more information on withholding on

calculation for withholding on the principal

installment payments, get the instructions for

portion of each installment payment.

Form 593 or call Withholding Services and

Enter the address (or parcel number and

Compliance at 888.792.4900 or 916.845.4900.

county) of the California real property sold or

Part I – Buyer/Transferee

transferred.

Information

Part III – Installment

Enter the buyer’s/transferee’s name as it

Agreement Terms

is shown on the escrow instructions. Each

Promissory Note – Enter the terms of the

buyer/transferee is required to withhold on

promissory note and include the principal

individual payments and must complete

amount, installment amount, interest rate,

a separate Form 593-

. However, if the

and the number of months of the repayment

buyers/transferees are spouses/RDPs and both

period.

of them will be on the promissory note, then

include both names, social security numbers

Attach Form 593-

and a copy of the signed

(SSNs) or individual taxpayer identification

promissory note to Form 593.

numbers (ITINs), and signatures on one form.

Part IV – Buyer’s/Transferee’s

If the buyer/transferee is a business, enter the

business name in the business name field.

Acknowledgement to Withhold

The buyer’s/transferee’s identification number

By signing Part IV, you acknowledge that you

(SSN, ITIN, federal employer identification

will:

number (FEIN), CA corporation (CA Corp no.),

y Withhold on the principal portion of each

or CA Secretary of State (CA SOS) file number

installment payment.

is required on each form to be valid.

y Authorize the REEP to withhold the required

Part II – Seller/Transferor

amount only on the down payment.

y Withhold 3

% (.0333) of the total

Information

sales price or the Optional Gain on Sale

Enter the seller’s/transferor’s name as it is

withholding percentage, as specified by

shown on the escrow instructions. Use a

the seller/transferor on Form 593, on

separate Form 593-

for each seller/transferor

the principal portion of all subsequent

included on the promissory note. However, if

installment payments.

the sellers or transferors are spouses/RDPs

y Give one copy of Form 593 to the

and both of them will be on the promissory

seller/transferor by the 20th day of

note, then include both of their names

the month following the month of the

and SSNs or ITINs on one form. If the

installment payments.

seller/transferor is a business, enter the

y Send each withholding payment, with

business name in the business name field.

Form 593-V, and the completed Form 593

to the FTB by the 20th day of the month

Grantor trust – Enter the grantor’s individual

following the month of the installment

name and SSN or ITIN. Do not enter the

payment.

name of the grantor trust. The grantor trust is

y Inform the FTB within 60 days if the terms

disregarded for tax purposes and the individual

of the installment sale, promissory note, or

seller/transferor must report the sale and claim

payment schedule change. See Additional

the withholding on the grantor’s individual tax

Information for contact information.

return.

y Be subject to penalties if you do not:

Non-grantor trust – Enter the name of the

– Withhold on the principal portion of

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

each installment payment.

FEIN. If the non-grantor trust has not applied

– Send the withholding payment with

for a FEIN, leave the identification number

Form 593 to the FTB by the due date.

blank. Do not enter the trustee information.

– Send one copy of Form 593 to the

When the non-grantor trust receives their FEIN,

seller/transferor by the due date.

contact Withholding Services and Compliance

Electronic Signatures – Electronic signatures

at 888.792.4900.

are considered as valid as the originals.

Real Estate W/H Forms Booklet 2016 Page 21

California Form 593-I Draft - Real Estate Withholding Statement Sale Acknowledgement - 2017 Page 4

Related Articles

Related forms

Related Categories