Instructions For 593-B - Real Estate Withholding Tax Statement (Page 2 of 3) in pdf

Do not enter the decedent’s social security

Box 3 – Total Sales Price

installment payment or a principal payment.

number or individual taxpayer identification

Sales: Enter the total sales price of the

Exchanges: For completed deferred exchanges,

number or trustee information.

property, unadjusted for the seller’s ownership

enter the amount of boot (cash or cash

percentage. However, if on Form 593-C, Real

If the seller is an irrevocable trust, enter

equivalent) received by the seller. Check the

Estate Withholding Certificate, the seller

the name of the trust and the trust’s federal

Boot box.

allocated the sales price based on the portion

employer identification number (FEIN). If the

Failed Exchanges: Multiply the Total Sales

used as a principal residence verses a rental,

trust has not applied for a FEIN, leave the tax

Price in box 3 by the Ownership Percentage in

enter only the rental portion (e.g. a duplex

identification number blank. Do not enter the

box 4 and enter the result in box 7a. Check the

is sold where the seller lived in one side and

trustee information.

Failed Exchange box.

rented the other side).

If the seller is a single member disregarded

Note: If a failed deferred exchange had boot

Installment Sales: For withholding on the first

LLC, enter the name and tax identification

withheld upon in the original relinquished

installment payment paid in escrow, enter the

number of the single member.

property, reduce the amount that would

total sales price for the property transferred,

For all other non-individual sellers, enter the

otherwise be shown in box 7a by the boot

unadjusted for the seller’s ownership

FEIN or California corporation number.

that was already withheld upon in that escrow

percentage. For withholding on periodic

(total sales price times ownership percentage

Escrow or Exchange Information

installment payments, leave this box blank.

less boot withheld upon). Check the Failed

Exchanges: For all completed deferred

Exchange – Less Boot at Sale box.

Caution – Installment Sales

exchanges, or when the seller is receiving

Box 7b – Amount Withheld From This Seller

Follow the Installment Sales instructions

cash out of escrow, but intends to complete a

(Total Sales Price)

only if the buyer agrees either to withhold

deferred exchange, leave this box blank.

Complete this box if you are selecting the sales

% on each principal payment or

If a non-simultaneous exchange is not

price method.

the installment withholding percentage

completed or does not meet the deferred

specified by seller according to box 9

Multiply the Amount Subject to Withholding in

requirements, enter the total sales price.

in Form 593-B. The buyer must have

box 7a by 3.33% (.0333) and enter the result

Box 4 – Ownership Percentage

completed and signed Form 593-I, Real

in box 7b. This is the amount to withhold on

Enter this seller’s ownership percentage

Estate Withholding Installment Sale

this seller.

rounded to two decimal places (e.g. 66.67%).

Agreement, to defer any withholding. Attach

Boxes 8 and 9 should only be completed

Form 593-I behind the Form 593-B with

Failed Exchanges: If multiple transferors

when the seller has elected the Alternative

the withholding amount calculated as part

attempted to exchange this property, enter this

Withholding.

of the first installment payment paid in

seller’s ownership percentage. Otherwise, enter

Box 8 – Amount Withheld From This Seller

escrow, or with the first principal payment

100.00%.

(Alternative Election)

withholding, if there was no first installment

Box – Address

Check the corresponding tax rate used.

payment paid in escrow. You need not

Sales and Installment Sales: Enter the

obtain seller’s signature on each new and

Sales: Enter the amount from Form 593-E,

address (parcel number and county) of the

completed Form 593-B.

line 17.

transferred property.

If the buyer did not agree either to

Failed Exchanges: Multiply the Amount Subject

Exchanges: Enter the address of the

withhold 3

% on each principal payment

to Withholding by the corresponding tax rate

relinquished property.

or the installment withholding percentage

and enter the result in box 8.

Box – Withholding Method Selected

specified on box 9 on Form 593-B, or did

Note: If a failed deferred exchange had boot

Check the box of the withholding method

not complete Form 593-I, then follow the

withheld upon in the original relinquished

selected. Either the 3

% of the sale price or

instructions for Sales.

property, reduce the amount that was already

the alternative election based on the applicable

withheld upon in that escrow.

Box 1 – Escrow or Exchange Number

tax rate as applied to the gain on sale. Check

Installment Sales: The Installment

Enter the escrow or exchange number for the

only one box.

property transferred.

Withholding Percent from box 9 is applied

Boxes 7a and 7b should only be completed

to all installment payments (principal only),

Box 2 – Date of Transfer, etc.

when the seller selects the Standard

including the first installment payment received

Sales: Enter the date escrow closed.

Withholding Amount.

during escrow to determine the gain on sale.

Installment Sales: For withholding on first

Box 7a – Amount Subject to Withholding

The gain on sale is then multiplied by the

installment payment, enter the date escrow

(Total Sales Price)

seller’s applicable tax rate to determine the

closed. For withholding on periodic installment

Complete this box if you are selecting the sales

withholding amount.

payments, enter the date of the installment

price method.

Note: You must complete box 9 worksheet

payment.

Sales: Multiply the Total Sales Price in box 3

on page 7 to determine the withholding

Exchanges: For completed exchanges, enter

by the Ownership Percentage in box 4 and

percentage needed to complete the withholding

the date that the boot (cash or cash equivalent)

enter the result in box 7a. Check the Total

amount in item c below.

was distributed to the exchanger. For failed

Sales Price x Ownership % box.

a. Installment Payment . . . . . $__________

exchanges, enter the date when it was

If the seller intends to complete a deferred

b. Gain on Sale, multiply

determined that the exchange would not meet

exchange, but receives boot (cash or cash

line a by box 9 . . . . . . . . . $__________

the deferred exchange requirements and any

equivalent) out of escrow, enter the amount of

c. Withholding Amount . . . . . $__________

cash was distributed to the seller.

boot received by the seller. Check the Boot box.

Multiply line b by the applicable tax rate

Note: When withholding on boot or a failed

Installment Sales: If you are withholding on

Enter the result above and in box 8.

exchange, be sure to use the forms for the year

the first installment payment in escrow, enter

Individual 9.3%

that you entered in box 2 (rather than the year

the amount of the first installment payment. If

Corporation 8.84%

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

you are withholding on a periodic installment

Bank and Financial Corporation 10.84%

installment sale reporting for the gain.

payment, enter the principal portion of the

S Corporation 1.5%

payment. Check the Installment Sale Payment

Financial S Corporation 3.5%

box if you are withholding on either the first

Page Form 593-B

2006

Instructions For 593-B - Real Estate Withholding Tax Statement Page 2

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