Instructions For Form 593 - Real Estate Withholding Tax Statement

Installment Sale:

Step 1: Calculate the installment sale

If a failed deferred exchange had boot withheld

withholding percent that will be applied to all

upon in the original relinquished property,

a. Amount Subject to Withholding.

installment payments, including any deposits,

reduce the withholding amount by the amount

If you are withholding on the

down payments, or amounts paid for the

previously remitted to the FTB.

down payment in escrow,

seller/transferor received during escrow:

enter the required amount of the

*Tax Rates

down payment. If you are

a. Gain on sale from Form 593-E,

Individual and Trusts (Grantor

withholding on installment

line 16 . . . . . . . . . . . . . . . . .$__________

and Non-grantor) . . . . . . . . . . . . . . . . . . 12.3%

payments received after the

(estimated gain on sale)

Non-California Partnership . . . . . . . . . . . 12.3%

close of escrow or the

b. Selling price from Form 593-E,

Corporation . . . . . . . . . . . . . . . . . . . . . . 8.84%

final payoff in escrow, enter

line 1 . . . . . . . . . . . . . . . . . $__________

Bank and Financial Corporation . . . . . . 10.84%

the principal portion of

(total sale price)

S Corporation . . . . . . . . . . . . . . . . . . . . . 13.8%

the payment . . . . . . . . . . . . .$__________

Financial S Corporation . . . . . . . . . . . . . 15.8%

c. Installment sale withholding

b. Withholding Amount. Multiply

percent, divide line a by line b _ _ _._ _%

Seller/Transferor Signature

line a by 3

% (.0333) and

Step 2: Calculate the optional gain on sale

enter the result here and on

A signature is only required by the

withholding amount:

Form 593, line 5 . . . . . . . . . .$__________

seller/transferor if the Optional Gain

a. Installment payment or

On Sale Election method is used. If the

Exchange:

down payment . . . . . . . . . . .$__________

sellers/transferors are married or RDPs and

a. Amount Subject to Withholding.

b. Multiply line a by installment

they plan to file a joint return, then your

For completed deferred

sale withholding percent

signature and your spouse's/RDP's signature

exchanges, enter the amount

calculated in Step 1 . . . . . . .$__________

are both required.

of boot (cash or cash

c. Withholding amount, multiply

Electronic signatures shall be considered as

equivalent) received by

line b by the applicable tax rate*

valid as the originals.

the seller/transferor . . . . . . .$__________

for your filing type . . . . . . . .$__________

Preparer’s Name and Title/Escrow Business

b. Withholding Amount. Multiply

When withholding on the principal portion of

Name

line a by 3

% (.0333) and

each installment payment using the Optional

enter the result here and on

Provide the preparer’s name and title/escrow’s

Gain on Sale Election, the seller/transferor

Form 593, line 5 . . . . . . . . . .$__________

business name and phone number.

must provide the buyer/transferee with the

Failed Exchange:

Installment Sale Withholding percent to include

a. Total Sales Price. If a deferred

on Form 593-

exchange is not completed or

Send the original Form 593, the required

does not meet the deferred

withholding payment on the down payment,

requirements, enter the total

and a copy of the promissory note to the FTB.

sales price . . . . . . . . . . . . . .$__________

Do not attach a copy of the promissory note

b. Ownership Percentage. If

with withholding on installment payments sent

multiple sellers/transferors

in after the close of escrow.

attempted to exchange this

Exchange:

property, enter this

a. Boot Amount. Not to

seller’s/transferor's

exceed recognized gain . . . .$__________

ownership percentage.

Otherwise, enter 100.00% . . . _ _ _ ._ _%

b. Withholding Amount. Multiply

line a by the applicable tax

c. Amount Subject to

rate* and enter the result

Withholding. Multiply

here and on Form 593,

line a by line b . . . . . . . . . . .$__________

line 5 . . . . . . . . . . . . . . . . . .$__________

d. Withholding Amount. Multiply

Failed Exchange:

line c by 3

% (.0333) and

enter the result here and

a. Gain on Sale from

on Form 593, line 5 . . . . . . .$__________

Form 593-E, line 16 . . . . . . .$__________

b. Ownership Percentage. If

Withholding Calculation Using

multiple sellers/transferors

Optional Gain on Sale Election

attempted to exchange this

Conventional Sale/Transfer: Enter the amount

property, enter this

from Form 593-E, Real Estate Withholding –

seller’s/transferor's

Computation of Estimated Gain or Loss, line 17

ownership percentage.

on Form 593, line 5.

Otherwise, enter 100.00% . . . _ _ _ ._ _%

Trusts (Grantor and Non-grantor): Check

c. Amount Subject to

box 4B on Part III of Form 593 and use the

Withholding. Multiply

trust's highest tax rate, which corresponds to

line a by line b . . . . . . . . . . .$__________

the individual tax rate.

d. Withholding Amount. Multiply

Installment Sale: The optional gain on sale

line c by the applicable tax

withholding amount for an installment sale is

rate* and enter the result here

calculated in two steps.

and on Form 593, line 5 . . . .$__________

Real Estate W/H Forms Booklet 2016 Page 9

Instructions For Form 593 - Real Estate Withholding Tax Statement - 2017 Page 4

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