Instructions For Form 593 Advance Draft - Real Estate Withholding Tax Statement (Page 2 of 4) in pdf

E Amending Form 593

Specific Instructions

Conventional Sale or Transfer and Installment

Sales: Enter the address (parcel number and

To amend Form 593:

Foreign Address - Enter the information in

county) of the transferred property.

the following order: City, Country, Province/

• Complete a new Form 593 with the correct

Exchanges: Enter the address of the

Region, and Postal Code. Follow the country’s

information.

relinquished property.

practice for entering the postal code. Do not

• Check the “Amended” box at the top of the

abbreviate the country’s name.

form.

Part II – Escrow or Exchange

• Include a letter explaining what changes

Part I – Withholding Agent

Information

were made and why.

• Mail the amended form and letter to:

Enter the business or individual withholding

Line 1 – Escrow or Exchange Number

agent’s name, mailing address, and

FRANCHISE TAX BOARD

Enter the escrow or exchange number for the

identification number of the withholding

PO BOX 942867

property transferred.

agent (payer/sender). Enter the SSN or ITIN

SACRAMENTO CA 94267-0651

Line 2 – Date of Transfer, Exchange

only when the buyer, who is an individual, is

Whenever an amended Form 593 is provided

Completion, Failed Exchange, or Installment

sending the withholding payment. Include

to the FTB, each affected seller should also

Payment

the Private Mail Box (PMB) in the address

be provided with a copy. Be sure to check the

Conventional Sale or Transfer: Enter the date

field. Write “PMB” first, then the box number.

“Amended” box at the top of the revised form.

escrow closed.

Example: 111 Main Street PMB 123.

Amended forms can only be filed by the

Installment Sales: For withholding on the first

withholding agent. If a seller notices an error,

Seller or Transferor

installment payment, enter the date escrow

the seller should contact the withholding agent.

closed. For withholding on the principal portion

Enter the individual or business name (if

Do not file an amended Form 593 to cancel

of each installment payment, enter the date of

applicable), mailing address, and identification

the withholding amount for a Form 593-C,

the installment payment.

number of the seller or transferor. Include the

Real Estate Withholding Certificate, filed after

PMB in the address field. Write “PMB” first,

Exchanges: For completed exchanges, enter

the close of escrow. After escrow has closed,

then the box number. Example: 111 Main

the date that the boot (cash or cash equivalent)

amounts withheld may be recovered only by

Street PMB 123. If the seller has applied for

was distributed to the exchanger. For failed

claiming the withholding as a credit on the

an identification number, but it has not been

exchanges, enter the date when it was

appropriate year’s tax return. Get Form 593-C

received, enter, “Applied For” in the space for

determined that the exchange would not meet

for more information.

the seller’s ID and attach a copy of the federal

the deferred exchange requirements and any

application behind Form 593.

cash was distributed to the seller.

Instructions for Seller

If the seller is an individual, enter the SSN

When withholding on boot or a failed

or ITIN. If the sellers are husband/RDP and

exchange, be sure to use the forms for the year

This withholding of tax does not relieve you

wife/RDP and plan to file a joint return, enter the

that you entered on line 2 (rather than the year

from the requirement to file a California income

name and SSN or ITIN for each spouse/RDP.

of the sale), since the seller will be able to use

tax return and report the sale within three

Otherwise, do not enter information for more

installment sale reporting for the gain.

months and fifteen days (two months and

than one seller. Instead, complete a separate

Line 3 – Type of Transaction

fifteen days for a corporation) after the close of

Form 593 for each seller.

Check one box that represents the type of real

your taxable year.

If the seller is a business, enter the business

estate transaction for which the withholding is

You may be assessed penalties if:

name in the business name field along with the

being calculated.

• You do not file a tax return.

federal employer identification number (FEIN),

Conventional Sale or Transfer: Check this box

• You file your tax return late.

California Corp number, California Secretary of

if the conventional sale or transfer represents

• The amount of withholding does not satisfy

State (SOS) file number. If the seller is a grantor

the close of escrow for the real estate

your tax liability.

trust, enter the grantor’s individual name and

transaction. This sale or transfer does not

SSN or ITIN. Do not enter the name of the

contain any conditions such as an installment

How to Claim the Withholding

grantor trust. The grantor trust is disregarded

sale, boot, or failed exchange.

for tax purposes and the individual seller must

To claim the withholding credit, report the sale

Installment Sale Payment: Check this box

report the sale and claim the withholding on the

or transfer as required and enter the amount

if you are withholding on either the principal

individual’s tax return.

from line 5 on the withholding line on your tax

portion of the first installment payment

return, Withholding (Form 592-B and/or 593).

If the seller is a non-grantor trust, enter the

during escrow or on the principal portion of

Attach one copy of Form(s) 593, to the lower

name of the trust and the trust’s FEIN. If the

a subsequent installment payment including

front of your California tax return. Make a copy

trust has not applied for a FEIN, leave the

the final payoff in escrow. Attach a copy of

for your records.

identification number blank. Do not enter the

the promissory note with the first installment

trustee information. When you receive your

If withholding was done for a failed exchange

payment.

FEIN, contact the FTB at 888.792.4900.

or on boot in the year following the year the

Note: The withholding agent is required to

property was sold, the withholding is shown

If the seller is a single member disregarded

check box B for Installment Sale Payment in

as a credit for the taxable year the withholding

LLC, enter the name and identification number

line 3 if the transaction is structured as an

occurred since you qualify for installment sale

of the single member.

installment sale, as evidenced by a promissory

reporting. If you elect to report the gain in the

For all other non-individual sellers, enter the

note.

year the property was sold, instead of in the

FEIN, CA Corp number, CA SOS file number.

Boot: Check this box if the seller intends to

year you received the payment, contact the FTB

Enter the address (or parcel number and

complete a deferred exchange, but receives

at 888.792.4900 prior to filing your California

county) of the California real property

boot (cash or cash equivalent) out of escrow.

tax return for instructions to have the credit

transferred.

Failed Exchange: Check this box for any

transferred to the prior year.

failed exchange, including if a failed deferred

exchange had boot withheld upon in the

original relinquished property.

Page 2 Form 593 2012

Instructions For Form 593 Advance Draft - Real Estate Withholding Tax Statement Page 2

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