California Form 593 - Real Estate Withholding Tax Statement - 2015 Page 2
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52015 Instructions for Form 593
Real Estate Withholding Tax Statement
General Information
Use Form 593-V, Payment Voucher for Real
Mail forms and payment for the amount of tax
Estate Withholding, to remit real estate
withheld within 20 days following the end of
Do Not Round Cents to Dollars – On this form,
withholding payments to the FTB. Form
the month in which the transaction occurred.
do not round cents to the nearest whole dollar.
593-V should be used whether Form(s) 593,
Mail to:
Enter the amounts with dollars and cents as
is submitted electronically or by mail. The
FRANCHISE TAX BOARD
actually withheld.
withholding agent must use Form 593-V when
PO BOX 942867
Installment Sales – The withholding agent is
remitting a payment by check or money order.
SACRAMENTO CA 94267-0651
required to report as an installment sale (check
Payments may also be automatically withdrawn
Distribute the other two copies of Form 593
box B, Installment Sale Payment, on Line 3) if
from a bank account via an electronic funds
as follows:
the transaction is structured as an installment
transfer (EFT).
sale as evidenced by a promissory note. The
• Send one copy to the seller or transferor
withholding agent is required to withhold
B Helpful Hints
within 20 days following the end of the
3
/
% (.0333) of the first installment payment.
month in which the transaction occurred.
1
3
Year of Form – The year (at the top) of
• One copy will be retained by the withholding
Buyers are required to withhold on the
Form 593 must be the same as the year on
agent for a minimum of five years and must
principal portion of each subsequent
line 2. See instructions for line 2. If you do
be provided to the FTB upon request.
installment payment if the sale of California real
not have Form 593 with the correct year, go to
property is structured as an installment sale.
ftb.ca.gov to get the correct form.
E Amending Form 593
Withhold on Installment Sale Elect-out
Identification Numbers – Check to see that the
Method – If the seller or transferor elects not
An amended Form 593 can only be filed by
withholding agent’s and seller’s or transferor's
to report the sale on the installment method
the withholding agent. If a seller or transferor
identification numbers are correct and listed
notices an error, contact the withholding agent.
(Internal Revenue Code Section 453[d]),
in the same order as the names. If both a
the seller or transferor must file a California
To amend a Form 593 previously filed on the
husband/RDP and wife/RDP are listed, make
tax return and report the entire sale on
correct year form, but reporting incorrect
sure both social security numbers (SSNs)
Schedule D-1, Sale of Business Property. After
information:
or individual taxpayer identification numbers
filing the tax return and reporting the entire
(ITINs) are listed in the same order as their
• Complete a new Form 593 with the correct
gain, the seller or transferor must submit a
names.
information. Use the same year form as
written request to the Franchise Tax Board
originally filed, and check the “Amended”
Trusts and Trustees – It is important to report
(FTB) to release the buyer from withholding
box on the top left corner of the form.
the correct name and identification number
on the installment sale payments. Once the
• Attach a letter to Form 593 explaining what
when title is held in the name of a trust. If the
request is received, FTB will issue an approval
changes were made and why.
seller or transferor is a trust, see the Specific
or denial within 30 days.
Instructions on page 2, Part II, Seller or
To amend a Form 593 previously filed using an
Registered Domestic Partners (RDP) – For
Transferor.
incorrect year form:
purposes of California income tax, references
Preparer’s Name and Title/Escrow Business
• Complete a new Form 593 with the
to a spouse, husband, or wife also refer to a
Name – Provide the preparer’s name and
withholding information using the correct
California RDP, unless otherwise specified.
title/escrow’s business name and phone
year form. Do not check the “Amended” box
When we use the initials RDP they refer to both
number.
on the top left corner of the form.
a California registered domestic “partner” and
• Complete a new Form 593 using the same
a California registered domestic “partnership,”
C Who Must File
year form that was originally filed. Check
as applicable. For more information on
the “Amended” box on the top left corner
RDPs, get FTB Pub. 737, Tax Information for
Any real estate escrow person (REEP) who
of the form, and enter $0.00 as the amount
Registered Domestic Partners.
withheld on the sale or transfer of California
withheld on line 5 of the form.
real property must file Form 593 to report the
A Purpose
• Attach a letter to each Form 593 explaining
amount withheld. If this is an installment sale
what changes were made and why.
payment after escrow closed, then the buyer is
Use Form 593, Real Estate Withholding Tax
the responsible person.
Mail the Form(s) 593 and letter(s) to the
Statement, to report real estate withholding on
address indicated under General Information D,
sales closing in 2015, on installment payments
D When and Where to File
When and Where to File.
made in 2015, or on exchanges that were
Whenever an amended Form 593 is filed with
completed or failed in 2015.
You need three completed copies of Form 593
the FTB, each affected seller or transferor
for filing and distribution. File a copy of
Use a separate Form 593 to report the amount
should also be provided with a copy.
Form 593 and Form 593-V, along with the
withheld from each seller or transferor. If the
amount of tax withheld and mail to the address
Do not file an amended Form 593 to cancel
sellers or transferors are married or RDPs and
shown in this section.
they plan to file a joint return, include both
the withholding amount for a Form 593-C,
Real Estate Withholding Certificate, filed after
spouses/RDPs on the same Form 593.
For installment sales, with the principal
the close of escrow. After escrow has closed,
portion of the first installment payment, file
If the sellers or transferors are married or
amounts withheld may be recovered only by
a copy of Form 593, Form 593-
, Real Estate
RDPs and they are entered as one seller or
I
claiming the withholding as a credit on the
Withholding Installment Sale Acknowledgement,
transferor, we treat them as having equal
appropriate year’s tax return. Get Form 593-C
Form 593-V, a copy of the promissory note,
ownership interest. If the ownership interest
for more information.
and the amount of tax withheld. For subsequent
is not equal, separate Forms 593 need to
installment payments, the buyer should file
be filed for each individual to represent the
a copy of only Form 593 and Form 593-V
correct ownership interest percentage. If
along with the amount of tax withheld. You do
the information submitted is incorrect, an
not need to obtain the seller's or transferor's
amended Form 593 must be submitted to the
signature on each subsequent and completed
FTB by the withholding agent.
Form 593.
Form 593 Instructions 2014 Page 1
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