My September column contained a list of suggestions lor avoiding problems with filing California FIB Form 593 Real Estate Withholding
Tax Statement to obtain credit for the State income tax that was withheld on a real estate sale
1, 2011, the California real estate withholding
California Real Estate Withholding
Information for Sellers and Buyers
California had required a real estate withholding
tax to be completed with the sale, and now the client was due a sizeable refund--except the withholding was credited to the trust, not to her.
Assembly Bill 1338 changes California's real estate withholding
requirements and exemptions effective for all transactions closing on or after Jan.
For complex questions relating to real estate withholding
requirements, call (916) 845-7315.
Line 40 is for real estate withholding
, while line 51 will be used for the use tax.
There also have been a few changes to some tax forms, Crowe said, including a new line for real estate withholding
credit (line 40) and a new line for the use tax (line 51) on Form 540.
A: Real estate withholding
is a prepayment of state income taxes for sellers of California real estate.
Unlike current law for nonresident real estate withholding
, the FTB cannot allow a reduced amount of withholding based on the true gain (R&TC [ss]18662, as amended by AB 2065, Ch.