Instructions For Form 593 Advance Draft - Real Estate Withholding Tax Statement Page 3
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1
2
3
4Line 4 – Withholding Calculation
b. Ownership Percentage. If
With the principal portion of the first
Check one box that represents the method to
multiple transferors attempted
installment payment, attach a copy of the
be used to calculate the withholding amount
to exchange this property,
promissory note to the original Form 593 that
on line 5. Either the Total Sales Price Method
enter this seller’s ownership
will be sent to the FTB.
(3
/
% (.0333) of the sale price) or the Optional
percentage. Otherwise,
1
Exchanges:
3
Gain on Sale Election based on the applicable
enter 100.00% . . . . . . . . . . . . _ _ _ ._ _%
a. Boot Amount. Not to
tax rate as applied to the gain on sale. Check
c. Amount Subject to
exceed recognized gain . . . .$__________
only one box, A-G.
Withholding. Multiply
b. Withholding Amount. Multiply
Line 5 – Amount Withheld
line a by line b . . . . . . . . . . .$__________
line a by the applicable tax
Enter the amount withheld from this
d. Withholding Amount. Multiply
rate* and enter the result
transaction or installment payment based
line c by 3
/
% (.0333) and
1
here and on Form 593,
3
upon the appropriate calculation for either the
enter the result here and
line 5 . . . . . . . . . . . . . . . . . .$__________
Total Sales Price or the Optional Gain on Sale
on Form 593, line 5 . . . . . . .$__________
Failed Exchanges:
Election, below.
Withholding Amount Using
a. Gain on Sale from
Withholding Amount Using Total
Form 593-E, line 16 . . . . . . .$__________
Optional Gain on Sale Election
Sales Price
b. Ownership Percentage. If
Conventional Sale or Transfer: Enter the
multiple transferors attempted
Conventional Sale or Transfer:
amount from Form 593-E, Real Estate
to exchange this property,
a. Total Sales Price . . . . . . . . . .$__________
Withholding – Computation of Estimated Gain
enter this seller’s ownership
or Loss, line 17 on Form 593, line 5.
b. Enter the seller’s
percentage. Otherwise,
ownership percentage . . . . . . _ _ _ ._ _%
Installment Sales: The Installment
enter 100.00% . . . . . . . . . . . . _ _ _ ._ _%
Withholding Percent is applied to the principal
c. Amount Subject to Withholding.
c. Amount Subject to
portion of all installment payments, including
Multiply line a by line b and
Withholding. Multiply
the first installment payment received during
enter the result . . . . . . . . . .$__________
line a by line b . . . . . . . . . . .$__________
escrow to determine the gain on sale. The
d. Withholding Amount. Multiply
d. Withholding Amount. Multiply
gain on sale is then multiplied by the seller’s
line c by 3
/
% (.0333) and
1
line c by the applicable tax
3
applicable tax rate to determine the withholding
enter the result here and on
rate* and enter the result here
amount.
Form 593, line 5 . . . . . . . . . .$__________
and on Form 593, line 5 . . . .$__________
You must complete the calculation under
Installment Sales:
If a failed deferred exchange had boot withheld
Installment Withholding Percent first, in the
upon in the original relinquished property,
a. Amount Subject to Withholding.
next column, to determine the withholding
reduce the withholding amount by the amount
If you are withholding on the first
percentage needed to complete the withholding
previously remitted to the FTB.
installment payment in escrow,
amount in item c.
enter the required amount of the
*Tax Rates
a. Installment Payment. . . . . . .$__________
first installment payment. If you
Individual 9.3%
b. Gain on Sale, multiply line a by
are withholding on subsequent
Non-California Partnership 9.3%
the Installment Withholding
installment payments or the
Corporation 8.84%
Percent (calculated in the
final payoff in escrow, enter
Bank and Financial Corporation 10.84%
next column) . . . . . . . . . . . .$__________
the principal portion of the
S Corporation 10.8%
payment . . . . . . . . . . . . . . . .$__________
c. Withholding Amount. Multiply
Financial S Corporation 12.8%
line b by the applicable tax
b. Withholding Amount. Multiply
rate* and enter the result here
Part III – Perjury Statement
line a by 3
/
% (.0333) and
1
3
and on Form 593, line 5 . . . .$__________
enter the result here and on
Complete the Seller’s and Preparer’s
Form 593, line 5 . . . . . . . . . .$__________
Installment Withholding Percent
information. A signature is only required if the
Complete this calculation for the Installment
Exchanges:
Optional Gain On Sale Election method is used.
Withholding Percent that will be applied to
a. Amount Subject to Withholding.
Preparer’s Name and Title/Escrow Business
all installment payments, including the first
For completed deferred
Name
installment payment received during escrow.
exchanges, enter the amount
Provide the preparer’s name and title/escrow’s
If withholding on the principal portion of each
of boot (cash or cash
business name and phone number.
installment payment, the seller must provide
equivalent) received by
the buyer with the Installment Withholding
the seller. . . . . . . . . . . . . . . .$__________
I,
Percent to be included on Form 593-
b. Withholding Amount. Multiply
Real Estate Withholding Installment Sale
line a by 3
/
% (.0333) and
1
Acknowledgement. If withholding on the first
3
enter the result here and on
installment payment is received during escrow,
Form 593, line 5 . . . . . . . . . .$__________
then compute the percent as follows:
Failed Exchanges:
a. Gain on Sale from
Form 593-E, line 16 . . . . . . .$__________
a. Total Sales Price. If a deferred
exchange is not completed or
b. Selling Price from
does not meet the deferred
Form 593-E, line 1 . . . . . . . .$__________
requirements, enter the total
c. Installment Withholding
sales price . . . . . . . . . . . . . .$__________
Percent, divide line a by
line b . . . . . . . . . . . . . . . . . . . _ _ _ ._ _%
Form 593 2012 Page 3
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