Instructions For Form 593 Draft - Real Estate Withholding Tax Statement

Conventional Sale or Transfer and Installment

Line 4 – Withholding Calculation

b. Ownership Percentage. If

Sale: Enter the address (parcel number and

Check one box that represents the method to be

multiple sellers or transferors

county) of the transferred property.

used to calculate the withholding amount on line

attempted to exchange this

5. Either the Total Sales Price Method (3

property, enter this seller’s

Exchange: Enter the address of the relinquished

(.0333) of the sale price) or the Optional Gain

or transferor's ownership

property.

on Sale Election based on the applicable tax rate

percentage. Otherwise,

as applied to the gain on sale. Check only one

enter 100.00% . . . . . . . . . . . . _ _ _ ._ _%

Part III – Escrow or Exchange

box, A-G.

c. Amount Subject to

Information

Line 5 – Amount Withheld from this Seller or

Withholding. Multiply

Transferor

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

Line 1 – Escrow or Exchange Number

Enter the amount withheld from this transaction

Enter the escrow or exchange number for the

d. Withholding Amount. Multiply

or installment payment based upon the

property transferred.

line c by 3

% (.0333) and

appropriate calculation for either the Total Sales

enter the result here and

Line 2 – Date of Transfer, Exchange

Price or the Optional Gain on Sale Election,

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

Completion, Failed Exchange, or Installment

below.

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

Withholding Calculation Using

a default date of January 1 of the tax year in

Withholding Calculation Using

which the Form 593 is received. Penalties may

Optional Gain on Sale Election

Total Sales Price Method

apply for failure to file a complete, correct,

Conventional Sale or Transfer: Enter the

and timely information return. For additional

Conventional Sale or Transfer:

amount from Form 593-E, Real Estate

information, see General Information F, Interest

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

Withholding – Computation of Estimated Gain or

and Penalties.

Loss, line 17 on Form 593, line 5.

b. Enter the seller’s or transferor's

Conventional Sale or Transfer: Enter the date

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

Installment Sale: The optional gain on sale

escrow closed.

withholding amount for an installment sale is

c. Amount Subject to Withholding.

Exchange: For completed exchanges, enter the

calculated in two steps.

Multiply line a by line b and

date that the boot (cash or cash equivalent)

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

Step 1: Calculate the installment sale

was distributed to the exchanger. For failed

withholding percent that will be applied to

exchanges, enter the date when it was

d. Withholding Amount. Multiply

all installment payments, including the first

determined that the exchange would not meet

line c by 3

% (.0333) and

installment payment (this includes any deposits,

the deferred exchange requirements and any

enter the result here and on

down payments, or amounts paid for the seller)

cash was distributed to the seller or transferor.

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

received during escrow:

When withholding on boot or a failed exchange,

Installment Sale:

a. Gain on sale from Form 593-E,

be sure to use the forms for the year that you

a. Amount Subject to Withholding.

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

entered on line 2 (rather than the year of the

If you are withholding on the first

(sale price minus cost of sale)

sale), since the seller or transferor will be able

installment payment in escrow,

to use installment sale reporting for the gain.

b. Selling price from Form 593-E,

enter the required amount of the

Installment Sale: For withholding on the first

first installment payment. If you

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

installment payment, enter the date escrow

are withholding on subsequent

(total sale price)

closed. For withholding on the principal portion

installment payments or the

c. Installment sale withholding

of each installment payment, enter the date of

final payoff in escrow, enter

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

the installment payment.

the principal portion of the

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

Line 3 – Type of Transaction

Step 2: Calculate the optional gain on sale

Check one box that represents the type of real

b. Withholding Amount. Multiply

withholding amount:

estate transaction for which the withholding is

line a by 3

% (.0333) and

a. Installment payment . . . . . .$__________

being calculated.

enter the result here and on

b. Multiply line a by installment

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

Conventional Sale or Transfer: Check this box if

sale withholding percent

the conventional sale or transfer represents the

Exchange:

calculated above . . . . . . . . .$__________

close of escrow for the real estate transaction.

a. Amount Subject to Withholding.

c. Withholding amount, multiply

This sale or transfer does not contain any

For completed deferred

line b by the applicable tax rate*

conditions such as an installment sale, boot, or

exchanges, enter the amount

for your filing type . . . . . . . .$__________

failed exchange.

of boot (cash or cash

Installment Sale Payment: Check this box if

equivalent) received by

When withholding on the principal portion of

the transaction is structured as an installment

the seller or transferor . . . . .$__________

each installment payment using the Optional

sale, as evidenced by a promissory note, or if

b. Withholding Amount. Multiply

Gain on Sale Election, the seller or transferor

you are withholding on the principal portion

line a by 3

% (.0333) and

must provide the buyer with the Installment Sale

of any installment payment. Attach a copy of

enter the result here and on

Withholding percent to include on Form 593-

the promissory note with the first installment

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

Send the original Form 593, the required

payment only.

Failed Exchange:

withholding payment on the principal portion

Boot: Check this box if the seller or transferor

of the first installment payment, and a copy of

a. Total Sales Price. If a deferred

intends to complete a deferred exchange, but

the promissory note to the FTB. Do not attach

exchange is not completed or

receives boot (cash or cash equivalent) out of

a copy of the promissory note with subsequent

does not meet the deferred

escrow.

installment payments.

requirements, enter the total

Failed Exchange: Check this box for any

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

failed exchange, including if a failed deferred

exchange had boot withheld upon in the original

relinquished property.

Form 593 Instructions 2014 Page 3

Instructions For Form 593 Draft - Real Estate Withholding Tax Statement - 2015 Page 3

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